Don’t Let a Disaster Derail Your Small Business

It is with a heavy heart that I watch the disaster in Japan reveal the devastation that has occurred. Who knows how many small businesses have come to an end as a result? While many of us will never experience a disaster such as that, there are many more potential disasters waiting in the wings for small businesses like ours. And any one of them can put you out of business.

About ninety percent of the small businesses in the US have less than ten employees. And plenty of those only have one or two. So the loss of a single person in your business can tip it right over the edge.

Ive heard of three disasters in the last month that could have put companies out of business but didnt because of action that was taken quickly to move the company forward. Two of those are solopreneurs with outsourced support staff that could have lost their entire business.

Late last year, Michelle MacPhearson had a medical emergency that put her out of commission. Unfortunately, her back office systems failed also in what could only be considered a perfect storm of events. It took Michelle a while to undo all of the damage. Fortunately she has a good reputation and lots of other online support so shes pulled through it pretty well.

Just last month, Rosalind Gardner lost all of her hosting for all of her websites because of a disaster at her hosting company. Shes changed her direction and ideas about doing business with a solopreneur for important business services because of it.

And today, a news release landed in my email box that shared the story of entrepreneurs Tony and Linda Cole who saw their lives change forever when their 12-year-old son Anthony Cole Jr., had a heart attack on the school playground. It took a year before Anthony awoke from his coma and two years before the Coles were able to return their sales training company to the rousing success it had been on track to become. Here are some tips they shared:

DISCUSS “WHAT-IFS”

Talking to your business partner or principal will detail what they can do on your behalf in an emergency situation.

CREATE A PLAN

Decide who will be responsible for what during a crisis.

FOSTER REAL-LIFE RELATIONSHIPS

Forging relationships with clients benefits everyone and can help retain business when times get tough.

DETERMINE WHO WILL BE RESPONSIBLE

Assigning responsibilities at home is as crucial as it is at work.

LEGAL ADVICE CAN BE CRUCIAL

Critical circumstances often require living wills, power of attorney or other timely legal documents. Seek professional expertise.

THERE IS NO BALANCE

In the early stages there is no balance. Focus on what’s most crucial.

DON’T GET DRAGGED DOWN

Dwelling on what might happen is emotionally unhealthy and counterproductive.

FIND A CLOSE ADVISOR

A trusted confidant can offer counsel and a place to vent.

So heres the deal. You must have a plan so your business can run without you. One of my favorite books on the topic is How to Make Your Business Run Without You by my colleague Susan Carter (book review here). Susans no nonsense approach can help you be prepared.

Take action now.