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Survive and Thrive! Illinois Small Business Development Center at Harper College The ILSBDC at Harper College is funded in part through a cooperative agreement.

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Presentation on theme: "Survive and Thrive! Illinois Small Business Development Center at Harper College The ILSBDC at Harper College is funded in part through a cooperative agreement."— Presentation transcript:

1 Survive and Thrive! Illinois Small Business Development Center at Harper College The ILSBDC at Harper College is funded in part through a cooperative agreement with the U.S. Small Business Administration, Department of Commerce and Economic Opportunity, and Harper College to help our local businesses start, grow, and expand. Presented by: Sue Smedinghoff, MBA ILSBDC Business Advisor

2 You Are The Community 2 Small Businesses You represent 99.7% of all businesses in US You represent 99.7% of all businesses in US You employ 50% of workforce You employ 50% of workforce You generate 64% of the new jobs in the last 15 years You generate 64% of the new jobs in the last 15 years Many of you employ 10 or fewer Many of you employ 10 or fewer

3 What Are the Risks? Business Technological Natural / Hazardous 3

4 Are You Prepared? If You Experience a Disaster: 25% Never Reopen 80% Who Do Not Recover Within 1 Month Likely to Go Out of Business 43% Never Reopen If Experienced a Major Loss of Business Data 4

5 BUSINESS RISKS 5

6 What Happens When? 6

7 7 Financial Credit Line Pulled Credit Card Rates Increase Revenue Deteriorates

8 What Happens When? 8 Partner Leaves Employee Violence Union Strikes Employee

9 What Happens When? 9 Industry Downturn Vendor(s) Goes Out of Business Strike

10 What Happens When? 10 Competitors Merge Customer Leaves Pricing Pressures Competitor

11 What Happens When? 11 Equipment Breakdown Technology Changes Materials in Short Supply Operations

12 What Happens When? 12 Contract Breach Regulations Changes Tax Increase Legal

13 Not Sure! 13 Legal Operations Competitor Industry Employee Financial

14 Risk Evaluation 14 Likelihood of Situation Happening Extent of ImpactExtent of Impact Impact = Degree of Risk of Business Survival Likelihood = Chance of it Happening

15 Prioritize 15 Extent of ImpactExtent of Impact Likelihood of situation happening Minor Impact / Major Impact / Minor Impact / Major Impact / Requires Effective Management Requires Thoughtful Planning & Effective Management Low Likelihood High Likelihood Low LikelihoodHigh Likelihood

16 Consider Impact Over Time 16 Extent of ImpactExtent of Impact Time

17 Develop a Risk Plan For Each Business Area Evaluate Risk Identify Scenario Determine Strategies 17

18 Possible Strategies 18

19 Possible Strategies 19 Financial Credit Line Pulled Credit Card Rates Increase Revenue Deterioration Cash Preservation Strategies Debt Restructure Revenue Diversification

20 Possible Strategies 20 Partner Leaves Employee Violence Union Strikes Employee Reorganization Emergency Response Plan Management Trained

21 Possible Strategies 21 Industry Downturn Vendor(s) Goes Out of Business Strike Reposition / Diversify Alternate Vendor Contingency Plan

22 Possible Strategies 22 Competitors Merge Customer Leaves Pricing Pressures Competitor Key Account Incentives Customer Management Strategies Cost Controls

23 Possible Strategies 23 Equipment Breakdown Technology Changes Materials in Short Supply Operations Equipment Backup Technology Migration Plan Strategic Vendor Relationship

24 Possible Strategies 24 Contract Breach Regulations Changes Tax Increase Legal Contract Contingency Impact Assessment Analysis & Strategic Response

25 INCREASES YOUR ABILITY TO COMPETE CREATE A RISK PLAN 25

26 TECHNOLOGICAL RISKS 26

27 What Will You Do When? 27

28 What Will You Do When? 28 Hardware Screen Breaks Server / Desktop Fails Hard Drive Crashes

29 What Will You Do When? 29 Software Virus / Worms / Trojans Software Bug Operating System Failure

30 What Will You Do When? 30 Communications Telephone System Down Network Fails Account Breach

31 What Will You Do When? 31 Internet Outage Bank Payment System Unavailable Credit Card Number Theft

32 What Will You Do When? 32 Data Employee Sabotage Database Failure Corrupted Data

33 What Will You Do When? 33 Website Security Breach Credit Card Fraud Website Defacement

34 Don’t Know? 34 Website Data Communications Software Hardware Internet

35 Assess Your Risk 35 Extent of ImpactExtent of Impact Likelihood of situation happening Minor Impact / Major Impact / Minor Impact / Major Impact / Requires Effective Management Requires Thoughtful Planning & Effective Management Low Likelihood High Likelihood Low LikelihoodHigh Likelihood

36 Consider Duration of Impact 36 Extent of ImpactExtent of Impact Time HourDayWeekMonth How Long Can You Go Before It Impacts the Ability to Do Business?

37 For Critical Business Functions Identify IT Resource Requirements Identify Disruption Impact & Allowable Outage Times Determine Strategies 37 Develop a Business Continuity Plan

38 Possible Strategies Obtain Redundant Equipment Store Installation Disks for Easy Access Identify Alternate Computing Site Select Alternative Communications Backup Files Regularly & Store Offsite Purchase Security Software / Firewalls 38

39 PROTECT YOUR INVESTMENT DEVELOP A BUSINESS CONTINUITY PLAN 39

40 NATURAL / HAZARDOUS RISKS 40

41 Do You Recall? 41 September 11, counties declared a disaster after 10 inches of rain in 2008? F1 Tornado that ripped through the Village of Bloomingdale in 2008? Cook County Admin building fire in 2008? Winter storm that shutdown Randhurst, Woodfield and other businesses in 2008? Disasters Can Happen to You!

42 What is a Disaster? 42

43 Are You Prepared For? 43

44 Are You Prepared For? 44 Winter Storm Power Outage Burst Pipes Roof Collapse

45 Are You Prepared For? 45 Flash Flood Computers Ruined Inventory Damaged Records Destroyed

46 Are You Prepared For? 46 Tornado Strip Mall Leveled Building Destroyed Company Vehicle Damaged

47 Are You Prepared For? 47 Terrorism Business Data Destroyed Business District Crippled Customer Data Theft

48 Are You Prepared For? 48 Fire Employee Injury Property Damage Repairs

49 Are You Prepared For? 49 H1N1 Employee Absences Cancellations / No Shows Customer Buying Changes

50 NO! 50 H1N1 Terrorism Fire Tornado Flash Flood Winter Storm Terrorism

51 Assess Your Risk 51 Extent of ImpactExtent of Impact Likelihood of situation happening Minor Impact / Major Impact / Minor Impact / Major Impact / Requires Effective Management Requires Thoughtful Planning & Effective Management Low Likelihood High Likelihood Low LikelihoodHigh Likelihood

52 Consider Duration of Impact 52 Extent of ImpactExtent of Impact Time HourDayWeekMonth How Long Can You Go Before It Impacts the Ability to Do Business?

53 Plan for Each Stage of Disaster 53 Extent of ImpactExtent of Impact Time Respond Control Manage

54 Develop a Business Continuity Plan Protect People and Property Resume Critical Business Functions Minimize Downtime to Retain Client / Customer 54

55 Business Continuity Plan Does What? Identifies and Protects Critical Resources Human resources –Your people Physical resources –Your business location –Your inventory –Your data Business continuity/continuation –Your ability to continue 55

56 Possible Strategies Capture Key Contact Information Employees, Customers, Vendors Determine Critical Business Functions Identify Vital Business Records Inventory Essential Equipment & Supplies Select Recovery Location 56

57 PROTECT JOBS AND YOUR COMMUNITY DEVELOP A BUSINESS CONTINUITY PLAN 57

58 Why Plan? Remain Competitive Protect Your Investment Protect Jobs Stabilize Your Community 58

59 Don’t Be a Statistic! Commit to Developing Plans Complete Risk Assessments Identify Likely Scenarios Develop Plan(s) Seek Assistance! ILSBDC at Harper College Free 1 on 1 Confidential Plan Development Advice with a Qualified Business Advisor 59

60 Illinois Small Business Development Center Business Advisers for Established and Start-Up Businesses The ILSBDC at Harper College is funded in part through a cooperative agreement with the U.S. Small Business Administration, Department of Commerce and Economic Opportunity, and Harper College to help our local businesses start, grow, and expand.

61 Call For An Appointment! Illinois Small Business Development Center at Harper College The ILSBDC at Harper College is funded in part through a cooperative agreement with the U.S. Small Business Administration, Department of Commerce and Economic Opportunity, and Harper College to help our local businesses start, grow, and expand. ILSBDC at Harper College


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