Navigating September: Your Financial Readiness for Disasters

September marks National Disaster Preparedness Month, a pivotal time to reflect on the unpredictability of disasters and the importance of preparation. Establishing a strong financial contingency plan is critical, particularly when a staggering 40% of small businesses never reopen after a disaster. By adequately preparing, your business can not only survive but also thrive amidst uncertainty.

Backup Key Documents

Securely storing financial records and essential documents off-site or in cloud-based solutions is essential. In the aftermath of a disaster, quick access to these documents can significantly ease the recovery process and minimize downtime.

Check Your Emergency Fund

Consider whether your business has three to six months' worth of operating expenses set aside. This fund can serve as a lifeline during a crisis, allowing you to maintain essential operations. If your emergency fund is lacking, focus on building or replenishing it with small, regular contributions.

Review Your Insurance Coverage

Assess whether you have adequate protection for business interruption, property damage, or disability. Engage with an insurance advisor to ensure your coverage reflects current risks and adequately protects your business against potential threats.

Build a Continuity Plan

Creating a clear, actionable plan that your entire team understands is vital for maintaining essential operations during a disaster. Regularly reviewing and updating this plan ensures it's current, comprehensive, and capable of addressing the specific needs and risks faced by your business.

With September serving as a reminder, now is the time to take action. Begin drafting a financial contingency plan, review your existing strategies, or reach out for professional support to identify and fill any gaps. By empowering your business with preparation, you are taking a proactive step toward ensuring its resilience and continuity.