Does my business need a disaster recovery plan?

SCORE counselor Bala Subramanian reminds us that based on current events businesses large and small should have a Disaster Recovery plan in place.

“Small business owners need to plan for many contingencies including unexpected disasters. The gulf oil spill illustrates this fact vividly. While the media and society considers this as BP’s (a large business by any measure) failure and accuses their unpreparedness for that eventuality, all small businesses such as: fisherman, oysterman, tourist industry dependents, i.e., restaurants, hotels, etc., affected by that event are equally unprepared. If those small businesses had considered the impact of such unexpected catastrophic events, they could have been better prepared to state their claims and not only seek compensation but also have alternate solutions for their survival, insuring their continued existence.

Business plans rarely include disaster recovery. Disaster recovery caused by an internal or an external failure is essential for large as well as small businesses.

In the case of a small business, owners should plan for such eventuality and have a contingency action plan that would enable them to relocate re-source-suppliers and continue their services to their customers. Even in cases when there are only walk-ins and the customers are transients, a disaster recovery plan can provide valuable information to those end-users, clients and the dependants of those businesses services; an alternative way to have those services available to them in an uninterrupted manner.

The DR (disaster recovery) or BC (business continuity) plan begins with risk analysis and ends with a plan that needs constant updating. There are several steps in between which answers questions such as: What are the threats? What are the probabilities associated with each of those threats occurring? Prioritizing and ranking the threats using an estimate, perhaps based on the cost associated with the loss of value to your business if that threat occurred.

Each business is unique in its needs and with thoughtful consideration you can create a Disaster Recovery Tool Kit for your business that may include:
 A contingency check list or a questionnaire.
 An audit questionnaire.
 A dependency analysis document (with questions, guidelines and a time frame).
 A business impact analysis.
Based on these findings each small business needs to have an action list to recover from any disaster contingency.

Here is a link to more resources: http://www.businesscontinuityworld.com/tool.htm, an organization that specializes in providing technical services.

If you as a small business owner feel this to be of importance and want to learn more, contact SCORE at the number below to arrange a free counseling session.”

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties

Am I ready to be my own boss?

SCORE® counselor and noted advertising executive, Alan Yarnoff asks the question, “Do you want to be your own boss?”

How many times have you gotten up in the morning and headed to work wondering if I would be better off being my own boss and answer to no one but myself? Being your own boss is not an easy task, as evidenced by the fact that 85% of all small business fail after five years. Even so, being the boss can be appealing and many have had great success. Before you give up a steady job here are some points you need to consider:
- Are you a good decision maker who can make decisions quickly under pressure and in an independent manor?
- Do you have the stamina to put in seventy to eighty hour work weeks over a long and protracted period?
- Do you have good business skills from marketing to accounting and beyond? Remember small business is just that and you need to be prepared to do it all.
- Are you a self starter? It will be up to you to take the lead to develop the business, manage the process, and follow through on all the projects.
- Do you work well independently, since once you are on your own you really are alone? No accounting department to call on for forecasts, no marketing group to turn to for sales and promotion ideas, and no dedicated sales organization to bring in the business.
- Are you ready to handle the uncertain financial risks? Remember you won’t be getting a pay check weekly, and there will be times when your cash flow dips well below your operational costs leaving you short of covering your fixed personal expenses.

Lastly, remember this new venture will completely change your life. You will need to balance family demands with your new responsibilities. You may have financial difficulties before the company becomes profitable creating a need to reduce your living standards and forego family activities that had been common place prior to your new business adventure.

Well, if you answered the above with a definite "yes", you may be a candidate to be the boss. Remember, before you leap into the market place do your homework and make sure you get it right.

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties

What should I consider in outsourcing functions of my business?

Outsourcing is a common practice in today’s business world, but it’s not the domain of large companies. Small business owners use outsourcing for a variety of reasons—to handle work overflows, receive specific expertise in a new or unfamiliar area such as marketing or IT, or take on more routine administrative tasks that are taking up too much of their time and attention.

The decision to outsource certain functions requires a professional approach, particularly since the small business owner may be understandably leery about relinquishing control over a task that he or she has handled from the outset. Developing a successful long-term relationship with an outsourcing partner requires effort on both sides. It’s important to treat it like a partnership, because that’s what it really is. A vendor who supplies a vital service for your business is like part of your staff, so you should go through a similar interviewing and reference checking process before you “hire” them.

Using outside service providers who have experience working with your particular type of business is important. You’ll also want someone with the technology and expertise to deliver cutting edge services.

Be sure to ask detailed questions about the service you will receive and your access to someone who can answer questions and solve problems as they arise. For most small business owners, this kind of accessibility and service are top priorities. If the firm you are considering won’t be available when something goes wrong, look elsewhere.

Also ask your candidate firms for current and past clients who received services of a scope similar to what you’re looking for. If possible, ask for clients similar to yours to properly gauge how well the company understands your needs. And, always meet with the service provider’s leadership as well as the people who will be working directly with you. You don’t want to have any doubts about their ability to handle what may be critical tasks for your business.

The “go-to” resource for help is the Outsourcing Institute, the world's largest professional community dedicated solely to outsourcing. The Institute’s Web site (www.outsourcing.com), provides a wealth of information about outsourcing trends, articles on securing IT and business processing services, and tips for ensuring your outsourcing partner delivers the level of performance you want.



Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties