What Kind of Disasters Can Put Your Business Out of Business

When a disaster occurs you will want be ready to recover and get your business up and running ASAP, otherwise your business might be a statistic. Considering that 93% of companies that lost access to their data for 10 days or more filed for bankruptcy within one year of the disaster, and 50% file for bankruptcy immediately, you can't afford not to be prepared...unless you are prepared to completely lose your business!


In order to prepare you need to know what to prepare for...

What kind of disasters caused the above mentioned businesses to file for bankruptcy?

1. Fire, flood, earthquake, tornado, or other natural disaster that caused major damage to the computer systems or completely destroyed the building where the business was located
2. Theft of the major or all computer systems and/or data
3. Electrical surges, brown outs, or power outages that caused electrical damage to the computer systems
4. Act of sabotage which in most cases were directed at the most important data or database by a disgruntled employee or contractor
5. A lawsuit brought against the company for lack of required data security
6. Lack of sufficient environmental controls which caused the computer systems to overheat to the point of complete failure
7. A virus infection which was designed to wipe out or erase all data on a computer hard drive
8. Hardware failure from normal usage

As you can see, not all disasters are "Acts of God" out of your control. In fact, numbers 2 through 8 are 100% preventable. To prevent these disasters you just need to know what process, procedures, or products to put into place.

How did these disasters impact the businesses to the point of putting the company out of business?

The answer is actually pretty simple. Essentially, the businesses were unable to deliver their product or service to their clients because...

1. Customers could not communicate with the business due to phone or email systems being unavailable
2. Ordering, inventory, and accounting databases were lost or unavailable preventing the processing of customer orders
3. The good name or reputation of the business was lost causing customers to go elsewhere because of lack of reliability, slow delivery of product, or lack of confidence their private data is secure

And the above is just to name a few causes, but you get the idea.

Next Blog: What steps you need to take to prevent the above from happening to your business.