KEY STEPS TO PROTECT YOUR BUSINESS FROM DISASTER
Small businesses make up the bulk of the Nigerian economy with most firms falling into this category employing an average of 5 to 30 persons; most persons go into business due to the economic nature of the country; that is a lack of white-collar jobs and other job opportunities.
Most of these businesses comprise artisans, small-scale farming enterprises, and other business ventures with a small chance of growth beyond the primary level. The COVID-19 the pandemic of 2020 exposed just how fragile most businesses were, with several MSMEs folding up and many more on the brink of extinction. With the condition and economic nature of the country losing one’s business is almost certainly a path to poverty and lack.
This article will enlighten you on the steps to take to protect your business from collapse in the New Year in the advent of another disaster (God forbid).
1. ASSESS YOUR BUSINESS RESILIENCE
Accessing the resiliency of your business is very important, what we mean by resiliency here is how strong and flexible your business is at the moment. Some key questions you need to ask yourself is:
1. Do you have a team of individuals in your firm that know all the key operations of the firm and can provide insight when planning for disasters?
2. Have you made sure all the critical documents of your business are secured? This includes documents like registration documents, account books, statements of account, etc.
3. How do you access your data or document if you are not able to access your physical shop? E.g. how do you get access to your account book or order books if you are on lockdown?
4. Have you identified possible problems that may arise for your business e.g. if you own an earth fish pond, have you taken into consideration a scenario when your farm is flooded?
Answering questions like this expose how strongly prepared your business is for a disaster.
2. KNOW YOUR RISKS
Know the risks associated with your business, these risks could both be in the production phase, transportation phase, or even delivery phase, and have a second option or try to mitigate these risks from happening. For instance, Okeke runs a logistics company, he has a fleet of vehicles that he uses to deliver goods to his customers, the biggest risk he faces is the threat of accidents due to bad roads, having identified his risk, Okeke can approach an insurance company and has his fleet insured?
Knowing your critical business resources would also allow you to plan better on how to mitigate any disaster or recover from such if they do happen.
3. KNOW YOUR OPERATIONS
Knowing your operations mean knowing the key functions your business performs, it is not just enough to have employees but you should also know what is required to run the business. Identifying critical departments and functions you cannot do without will help you to be able to better protect your business.
4. KNOW YOUR EMPLOYEES
This is very important to the survival of your business, in the event of a disaster, your employees are either going to help you survive or flee, knowing their capabilities and characters can help you identify and recruit those who would be invaluable assets during a crisis.
Having up to date contact information is very necessary and a means of communication.
5. KNOW YOUR KEY CUSTOMERS, SUPPLIERS, AND VENDORS
Knowing your key customers can help you to plan your recovery effort, you know whose needs you should meet first in the event of a disaster, who you should try to retain, they need to know that you will bounce back stronger than ever and you have them in mind.
Your suppliers are also very important, in the case of a disaster having a trusted supplier could be the difference between bankruptcy and recovery, also try to have alternative suppliers in the event your key suppliers disappoint you.
6. KNOW YOUR INFORMATION TECHNOLOGY
Identify all IT systems your firm would be using (both software and hardware). In the event of a disaster, which can be easily recovered or re-purchased? Is your data backed up properly? What are the alternatives in terms of machine failure?
Also, try to identify any process that could be made faster by IT and implement it, document all procedures, and keep in close contact with knowledgeable employees in the event of a disaster.
7. UPDATE, MAINTAIN AND TEST YOUR PLAN
As your firm progresses and you hire new employees or employ new technologies always update the resilience plan, train your employees to be aware of such a plan, maintain and ensure it is followed, and regularly test your plan, by conducting audits.
On a final note, disasters are not something we pray for, but they do happen and it would be better for us to be prepared in other not to lose our livelihoods. Following these simple steps could save our business from collapse or at the very least help our recovery effort.
HAPPY NEW YEAR
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