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According to the U.S. Department of Labor, over 40% of all businesses that experience a disaster never re-open and 25% of the remaining businesses close within two years. The smaller the business the less likely that it will be prepared.

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Many small business owners believe that preparing for disaster requires more money and/or time than is available. However, the most important steps for surviving a crisis cost relatively little. Being totally unprepared can be the costliest plan of all.

The only certainty about the unexpected is that it will happen some day. Even a minor incident can become a disaster if not managed properly. Disaster planning is like insurance in that you have to put things in place prior to occurrence of the disaster, not after the fact.

What Could Go Wrong?

There are an infinite variety of things that could go wrong for a landlord or property management company in the course of running the business.

How about a burglary of your office? Would they get your computer and your backup CDs lying on the desk or the external hard-drive under the computer desk? What if they stole the files containing personal data regarding all applicants for vacancies over the past 5 years? Do you know the legal penalties and potential financial liabilities for not adequately protecting this information?

Most business owners are fully aware that things can go wrong, but this awareness does not always translate into action. The human component of disaster planning is the weak link due to reluctance, fear, or uncertainty on how to plan.

The impact of an event may be quite different for different businesses. What might be considered a disaster for some is just an annoying disruption for another. For effective disaster planning, all those involved in a business need to have the same definition of a “disaster” and an understanding of what to do, how to do it, and who should do it.

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