This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Small Businesses Need Disaster Recovery Plans

NEW YORK (TheStreet) - Whether it's a tornado, a hurricane or the toilet exploding, small businesses should always have disaster recovery plans in place.

Natural disasters are here to stay and last week's devastating tornado that ripped through Moore, Okla. killing two dozen people and injuring hundreds, is a prime example that U.S. weather patterns are becoming increasingly chaotic. Small business owners should be prepared for events they can't control.

June 1 marks the start of hurricane season, and while many parts of the New York and New Jersey coastal communities are still rebuilding from Superstorm Sandy, one of the worst hurricane's in U.S. history, The National Oceanic and Atmospheric Administration (NOAA) forecasts a higher than average 2013 Atlantic hurricane season.

The forecast calls for 13 to 20 named storms, seven to 11 of which are expected to become hurricanes, of which three to six are expected to become major hurricanes (which have Category 3 or higher winds). For the 17-year period through 2012, hurricane season averaged 15 named storms, eight hurricanes and four major hurricanes.

Also see: Rebuilding After Sandy's Wrath

The Federal Emergency Management Agency (FEMA) estimates 40% of businesses do not reopen after a disaster, and of those that do reopen, 25% fail within one year.

A December 2012 survey by Alibaba, Vendio and Auctiva polled 600 small-business owners to gauge how prepared they were to run their business if a natural disaster struck. The findings were alarming: 74% of American small businesses do not have adisaster preparedness plan; 84% of them are without natural disaster insurance.

Bob Boyd, President and CEO of Agility Recovery, a former division of General Electric (GE) and a provider of business continuity and disaster recovery solutions to small and mid-sized businesses, spoke with TheStreet to offer small-business owners advice on preparing for uncontrollable events.

Also see: 5 Things to Know About Small Business This Week: May 24

Also see: Behind-the-Scenes At A Popcorn Company

How important is it to have a disaster recovery plan at a small business?

Boyd: I can't stress enough how critical it is for an organization. Big companies they have to have these plans. Most small businesses don't they don't know what the options are, they don't know how to get started. I think a lot of businesses think it's going to be expensive or difficult or time consuming to put a plan together [that can be relevant for] something bad, like a tornado hitting or a toilet rupturing. [A plan gives you] a strategy about what you're going to do about it.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs