Running a small business is hard enough without having to rebuild after a disaster. Many businesses don’t prepare properly and end up paying for it later. However, putting together a disaster recovery plan for your small business is more manageable than it sounds. We scoured the web and interviewed cybersecurity and risk management experts to bring you the best tips and resources so you can finally check “disaster plan” off your to-do list.
What is a disaster recovery plan for a small business?
A disaster recovery plan outlines how your business will respond to unexpected disruptions, including natural disasters, damaging cyberattacks and supply chain breakdowns, so you can keep operating or recover quickly.
In practice, a strong plan goes beyond documentation. It’s something you actively test and refine over time. Frank Russo, managing director of Imperium Consulting Group, shared an example of a large consumer goods retailer that treats disaster preparedness as an ongoing process. After major disasters (even ones that don’t affect their business), teams meet to walk through what they would have done if the event had impacted one of their locations.
Russo described this as a “catastrophe gaming process,” where employees work through real-world scenarios to uncover gaps, like a door that can’t be locked because the facilities manager is out.
That kind of preparation can make a measurable difference. When Hurricane Ike hit Houston in 2008, the company recovered quickly and even saw higher-than-normal sales because it was one of the only businesses open.
4 steps for creating a disaster recovery plan for small businesses
A solid disaster plan can mean fewer days out of business, clearer communication with customers and a smoother insurance claims process if something goes wrong. In some cases, it’s what helps a small business recover while others don’t.
We know your to-do list is already packed. The good news is that building a disaster plan doesn’t have to be overwhelming, especially with the number of practical resources now available. As Russo put it, “Even a basic plan is better than no plan.”
Here are four steps to help you put a plan in place.
Step 1: Identify your organization’s risks.
Start by identifying which types of disruptions could realistically affect your business. Depending on your location and operations, that might include:
- Hurricanes
- Winter weather
- Earthquakes
- Tornadoes
- Wildfires
- Flooding
- Public health events (like pandemics)
If you operate from a single location, this part is fairly straightforward. But risk isn’t limited to your storefront or office. Think through the full footprint of your business, including the following:
This is where many plans fall short: They focus only on the main location and overlook the dependencies that actually keep the business running.
To map this out more systematically, you can use a risk assessment tool from FEMA, which walks you through identifying vulnerabilities across your operations.
Review your
business insurance coverage at this stage. Not all policies cover every type of disaster, and you may not know that until something goes wrong. A quick check-in with your agent can help you understand what's covered and where you may need additional protection.
Step 2: Develop a plan.
Once you understand your risks, the next step is turning those insights into a plan. Here are the core elements to address:
- Assign a disaster plan coordinator: Start by assigning ownership. One person should be responsible for building and maintaining your disaster recovery plan, whether that’s an operations lead, office manager or another trusted team member. Your disaster plan coordinator doesn’t have to do everything alone, but they should be the one keeping the process moving and ensuring nothing falls through the cracks. If your business has multiple departments or locations, this person should loop in key stakeholders so each area is accurately represented.
- Define your plan’s coverage: From there, define what your plan actually needs to cover. At a minimum, a disaster recovery plan should focus on three priorities:
- Keeping employees safe
- Securing facilities, equipment and any hazardous materials
- Maintaining or restoring business operations
- Document specific procedures and roles: Your plan doesn’t need to be long or complicated, but it does need to be clear and easy to follow when something actually goes wrong. Most businesses should document:
- Evacuation procedures, including maps and routes
- Emergency contacts for communication (internal and external)
- Roles and responsibilities during a disruption (who stays, who shuts down what, who communicates updates)
- Employee emergency contact details and any critical medical considerations
- Instructions for handling sensitive equipment or hazardous materials, if applicable
- Pinpoint unique concerns: Finally, think through any situations that are unique to your business. That might include employees with mobility challenges or other workplace accommodations, specialized equipment that requires protection or industry-specific safety requirements.
If you’re unsure where to prioritize, your insurance broker or provider can be a helpful resource. They’ve seen how different types of disruptions play out and can often point out gaps you might miss.
Step 3: Implement and train.
Once your plan is in place, the real work begins. A disaster recovery plan only works if people know what to do (and have the tools to do it) before something goes wrong. When putting your plan into action, focus on a few key areas:
- Set up evacuation procedures: Employees need to know where to go and how to get out safely. Provide clear evacuation maps, post them in visible areas and designate evacuation wardens to guide people out of the building. As a general rule, OSHA recommends one warden for every 20 employees.
- Prepare communication materials in advance: Draft emergency messages now for employees, customers, suppliers and other stakeholders. Simple templates with fill-in-the-blank details can save valuable time. Make sure these materials are accessible both on-site and remotely, and that login credentials are documented somewhere secure and easy to find. Tools like internal communication apps can also help you get information out quickly when timing matters.
- Equip employees with essential supplies: Depending on your location and risks, employees may need to shelter in place or leave quickly. A basic “go bag” with water, nonperishable food, first-aid supplies and emergency tools can make a real difference during a disruption.
- Train employees on their roles: Every employee should understand what’s expected of them in an emergency, even if their only responsibility is to evacuate safely.
- Assign teams if appropriate: For more complex operations, you may also need to define specific teams, such as:
- A business continuity team to focus on getting operations back up and running and coordinating with insurance providers after a disruption.
- A crisis communications team to handle internal and external messaging to keep employees, customers and partners informed.
Disaster planning and
OSHA compliance go hand in hand. Many of the procedures you're putting in place, like evacuation routes and hazard handling, are already part of federal workplace safety requirements.
Step 4: Be a preparedness leader in your community.
Your business doesn’t operate in a vacuum. In a disaster, your recovery is often tied to how prepared your surrounding community is, from neighboring businesses to local infrastructure and services.
That’s why it can help to take a more proactive role. Sharing your disaster preparedness efforts and encouraging others to plan ahead can strengthen your local business environment and speed up recovery for everyone.
Becoming a disaster preparedness voice in your community can also have practical benefits for your business, including the following:
- Hiring and retention: Demonstrating that you take employee safety seriously can help when hiring and staffing your business, as it shows candidates you’re thinking about their well-being from day one.
- Business relationships: Talking about preparedness can open the door to more meaningful conversations with customers, partners and local organizations.
- Brand visibility: Sharing your efforts, whether through community outreach or social media, can reinforce your reputation as a responsible, prepared business.
If you choose to share your plan publicly, focus on clear, helpful information that others can learn from. The goal isn’t to promote your business — it’s to contribute to a more resilient community that benefits everyone.
Disaster preparedness resources for small businesses
Once you’ve outlined your plan, the following online resources can help you build it out, pressure-test it and fill in any gaps.
Preparedness checklists
If a storm or disruption is on the horizon, the following quick, actionable checklists from the Small Business Administration and Agility Recovery can help you prepare in the days leading up to an event. They’re practical, easy to follow and available as printable PDFs.
FEMA resources
If you’re starting from scratch or want a more structured approach, FEMA’s Ready Business toolkits are a strong foundation. These guides walk through planning across six key areas — staff, surroundings, space, systems, structure and service — and can be adapted to different types of businesses.
FEMA also provides additional planning tools through its Ready Business program to help you refine your disaster recovery plan and spot gaps you may have missed. These resources cover areas like:
Additional planning tools and guidance
The following resources can help you refine your plan, assess risks and make sure you’re covering the right areas.
How disaster planning plays out in the real world
Seeing how disaster planning plays out in real situations can make it easier to understand what actually matters and what’s worth prioritizing. Here’s a real-world example of a small business that prepared and improvised:
Bennett’s Market & Deli, a neighborhood grocery in Atlanta’s Grant Park, had operated for five years without a single power outage. But when Hurricane Irma approached in September 2017, owners Victoria Bennett and Claire Pearson put their disaster plan into action.
They bought a generator and stocked up on ice, collected coolers from neighbors and moved backroom inventory off the floor to protect it from flooding. They also sent staff home, choosing to run the store themselves rather than risk employee safety.
When the power went out, they had to improvise. Without credit card processors, cash registers or lighting, they continued selling items like beer, wine, bread and snacks using a cash bag and handwritten receipts.
“I think the neighborhood really appreciated that we were open,” Pearson said.
You can't predict exactly how a disaster will unfold, but preparation gives you options. In this case, it helped the business stay open and strengthen
customer relationships when it mattered most.
Get started on disaster planning
Russo, who advises Fortune 100 companies on disaster planning, shared what he tells small business owners who aren’t sure where to start.
“At a minimum, have an inventory of what your assets are and make sure it’s up to date,” Russo advised — something most businesses can complete in less than an hour.
From there, the focus should be on building a plan you can revisit and refine over time.
“Have an updated planning review session once per year,” Russo recommended. “Ideally, every quarter.”
The goal is to make disaster preparedness part of how your business operates, not something you think about only when a storm is on the way. A strong plan doesn’t just help you survive a disruption; it puts you in a better position to recover and move forward.
Sammi Caramela contributed to this article. Source interviews were conducted for a previous version of this article.
