Brinen & Associates

In-House General Counsel Services for your Company

Contact us today at (212)330-8151

  • About Us
    • Joshua D. Brinen
    • Martha Thrush
  • Practice Areas
    • Transactions and Corporate Law
    • Securities & Finance
    • Tax Planning and Controversy
    • Commercial Litigation
    • Commercial Real Estate
  • How We Can Help
    • Forming Your Company
    • Financing Your Company
    • Operating Your Company
    • Hiring Independent Contractors and Employees
    • Growing Your Company
    • Defending Your Company
  • Blog
  • Contact Us
You are here: Home / cyber security / Small Businesses Need Continuity Plans, Too

Small Businesses Need Continuity Plans, Too

October 3, 2017 by Joshua Brinen

“In the business world, the rearview mirror is always clearer than the windshield.” – Warren Buffett

Given the goings-on since our last post, we need to discuss the importance of disaster preparedness for small businesses. According to FEMA.gov, almost 40 percent of small businesses never reopen following a disaster because just a few inches of water can cause tens of thousands of dollars in damage. I find that unacceptable, especially because it can be prevented in many cases. When I advise a company – and particularly when it’s being created – the owners and I create business continuity plans in the event of a natural disaster, like a flood or earthquake. As Brinen & Associates seeks a permanent location, I’ve got disaster preparedness on my mind.

Establishing and Enacting the Plan

A business continuity plan outlines what steps you will take to ensure your company can continue to operate after a major disruption. Natural disasters, active shooters and cyber breaches are examples of events that would cause business interruption and prohibit the normal flow of activity.

Legally speaking, business continuity plans do not need to be formal – though it couldn’t hurt to have them in writing. They belong in the employee handbook and should not be left as verbal contracts.  Make it something someone can look at and execute with minimum creative thinking in the moment.   No matter what type of small business you operate, be sure each employee knows what their responsibility will be in the event of a major business interruption. For example, a pizza shop might shutter its doors and windows in the face of a flood and all employees would be expected to stay home until it passes. A small marketing firm owner facing the same flood, however, might expect employees to work remotely to finish a big project or check in before signing off entirely. There’s a gray area, too, like an accounting firm; some employees can work remotely but others, like administrators, might only be capable of performing their duties on-site.

A group text is a simple way for a small business owner to communicate with employees about whether a physical office or base of operations is closed and if that also means the company is closed.

Insurance

The most direct way to prepare is to seek out business continuity insurance. This is extremely important for any owner. This covers the loss of income that a business suffers after a disaster. The income loss covered may be due to the disaster-related closing of the business facility or due to the rebuilding process after a disaster.

It’s important to note that cyber security insurance may warrant a separate policy from a policy covering physical damage. This depends on the carrier and how much coverage you will need.

Data Migration

The next consideration needs to be your critical files. Offsite backup is critical. Will you hire a third party to handle your data migration or will you have your own IT department or person handle it? You can go cloud-based or you can clone, among other methods. I had one bad experience with the cloud back when it was in its infancy, which is why I prefer cloning – I have a copy of my critical files on my laptop that gets backed up as well on to other computers and servers. This enables me to easily work remotely during emergencies. Plenty of my clients have cloud-based storage and they operate just fine, too.

Ultimately, your business continuity plan should be flexible and amendable because new threats to businesses arise all the time and you will have to react. The business continuity plans my firm has drafted have helped clients get back on their feet after major natural disasters and data breaches. Contact Brinen & Associates to discuss your company’s needs.

Click here for an insightful infographic from the National Institute for Business and Home Safety: 5 Ways to Keep Flood Waters Out of Your Business

Related Posts

  • Active and Passive Businesses and the Proposed Tax Reform Bill
  • Why Cyber Security Insurance May Be Necessary For Small Businesses
  • Knowing When To Double Down
  • Learn From Nasty Gal’s Mistakes
  • First Days in Mnuchin Land

Filed Under: cyber security, Insurance, Operating Your Company, small business Tagged With: cyber security, insurance, natural disaster, productivity, small business, tips

Private Companies Services

  • Corporate Formation and Governing Documents
  • Corporate Governance and Corporate Management
  • Shareholder Agreements and Buy-Sell Agreements
  • Corporate Transactions
  • Tax Planning and Controversy
  • Corporate Planning
  • Corporate Structuring for Outside Investment
  • Structuring of Equity Compensation for Key Participants
  • Operating Agreements and Partnership Agreements
  • Disposition and Dissolution
  • Commercial Litigation

Practice Areas

  • Transactions and Corporate Law
  • Securities & Finance
  • Commercial Litigation
  • Commercial Real Estate
  • Estate Planning & Administration

Contact Us

Fields marked with a * are required.

Frequently Asked Questions

  • How do you merge an Limited Liability Company and a corporation?
  • I have a DE corporation with offices in NJ and NY. Most of our business is conducted in NJ, but we are headquartered in NY. Do we need to file taxes in all three states?
  • For corporations, which jurisdiction has the lowest state taxes?
  • What tax benefits are there to forming a trust rather than a will?
  • I am interested in forming a non-profit corporation in NY; can I be the sole shareholder and director?

CONTACT US

Brinen & Associates
90 Broad Street, Second Floor, New York, NY 10004
URL of Map
Phone: (212)330-8151
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

Practice Areas

  • Transactions and Corporate Law
  • Securities & Finance
  • Tax Planning and Controversy
  • Commercial Litigation
  • Commercial Real Estate
  • Estate Planning & Administration

FAQ's

Clients often come to us with some basic questions or problems to solve. Maybe they are entrepreneurs about to start a new business. If so, there are some threshold issues that need to be resolved about the right kind of company to set up and where it should be located. Or maybe it’s an individual who is beginning to think about writing her will. So we have prepared a few FAQ’s covering the type of inquires that we hear most frequently from clients and prospective clients.

READ OUR FAQs
©2020 Brinen & Associates, LLC - All Rights Reserved. | Disclaimer | Developed by Good2bSocial
logo
  • About Us
    • Joshua D. Brinen
    • Martha Thrush
  • Practice Areas
    • Transactions and Corporate Law
    • Securities & Finance
    • Tax Planning and Controversy
    • Commercial Litigation
    • Commercial Real Estate
  • How We Can Help
    • Forming Your Company
    • Financing Your Company
    • Operating Your Company
    • Hiring Independent Contractors and Employees
    • Growing Your Company
    • Defending Your Company
  • Blog
  • Contact Us