protecting small businesses against common business disruptions

MARKHAM, ON, Oct. 20 /CNW/ - The majority of Canadian small business owners are unprepared to deal with common disruptions that can impact their ability to do business, according to the latest American Express Small Business Monitor. Almost half of small business owners are unfamiliar with the practice of business continuity planning, which gives owners the ability to deal with everyday disruptions such as illness, flood, fire, power outages, computer viruses and Internet failures.

The quarterly monitor, published today, demonstrates the importance of planning for the unexpected, as two out of every five respondents have already experienced a "significant" disruption to their business. One Manitoba-based monitor respondent, for example, saw her business shut down completely for six months due to a flood to her premises. Another, an auctioneer from Ontario, lost his voice. Nearly half (46%) of the same group said the impact on their business lasted more than a month.

Nonetheless, small business owners find it difficult to address the threat: 80 per cent of respondents said preparing for potential disruptions is lower on their to-do list, or not even on their radar, and almost half (49%) don't have fire and flood insurance.

"Small businesses are a vital part of the country's economy, and given all they have to do, it's no surprise that they have very little time to invest in issues that don't translate to growth," said Howard Grosfield, VP & General Manager, Small Business Services, American Express Canada and International. "Business owners are laser focused on how to boost sales and profit, particularly during a recession. Business continuity planning, while a vital protection for small businesses, simply isn't going to make a company money in the short term."

Time and Money Hold Small Businesses Back from Planning Ahead

When asked how prepared they are to deal with a disruption compared to larger organizations, a mere seven per cent of small business owners said they are very prepared. But small business owners have not made planning a priority. Only 20 per cent stated that developing a plan to deal with disruptions is a top priority in the year ahead. Money was cited by 35 per cent as a hindrance to developing a plan, while a third of respondents said finding time was a struggle.

"Particularly in the first few years of a business, the owner tends to be the salesman, the accountant, the head of human resources and the secretary," Grosfield said. "That doesn't leave a lot of time for big-picture planning.