When you’re building your disaster recovery plan, it’s essential to think about several key components. A good DRP doesn’t just back up your data—it ensures your entire business can recover swiftly after a disruption.

1. Risk Assessment and Business Impact Analysis (BIA)

The first thing you need to do is assess your risks. What are the potential threats to your business? A simple server crash? A natural disaster like a fire or flood? Or perhaps a data breach?

A few years ago, I worked with a small manufacturing company that didn’t have a backup plan for their production data. When their main server went down, it caused a two-day halt in production. They lost significant revenue, not to mention the added stress on their employees.

A Business Impact Analysis (BIA) helps you identify the critical systems that need to be protected. For example, if you’re a healthcare SMB, patient records and medical devices need priority in your DRP. If you’re in retail, your e-commerce and inventory systems are your lifeline.

2. Data Backup and Recovery

This is the most critical part of your DRP—ensuring your data is safe and can be recovered in case of a disaster. I always tell my clients, “Backup is not optional; it’s a must!”

You have options here: cloud-based backups, on-site backups, or a hybrid approach. A couple of years ago, I helped a small software company move their critical data to the cloud. They had previously relied on an on-site backup solution, but a fire in their office would have destroyed everything. By using a cloud backup solution, they could restore everything within hours—no lost data and no downtime.

Your backups should happen regularly, and you should test your backup recovery periodically to ensure everything works as expected. I’ve seen companies discover the hard way that their backups weren’t actually working when they needed them most. Don’t let that be you.

3. Redundancy and IT Infrastructure

You also need to think about your IT infrastructure. What happens if one part of your system fails? Can your business continue running? Building redundancy into your IT systems (think multiple servers, cloud-based infrastructure, failover systems) can ensure you keep things running smoothly if one part of the system goes down.

A great example is a retail client of mine who had been relying on one server for everything—website hosting, point of sale (POS) systems, inventory tracking. When that server crashed, they were completely offline for 10 hours. After we set up cloud redundancy for their key systems, their operations became far more resilient.

4. Communication Plan

Disasters aren’t just about technology—they’re about people too. And when disaster strikes, communication is critical. Your team, your customers, and your partners need to know what’s happening and how to proceed.

For instance, I worked with a small tech consultancy that experienced a ransomware attack. They had a solid DRP, but their communication plan was weak. Their employees weren’t sure what to do, and customers were left in the dark. After this event, we implemented a comprehensive communication plan that included real-time updates for both internal and external stakeholders. Clear communication reduced anxiety and helped customers trust that the business was handling the situation.

5. Testing and Ongoing Updates

Creating a disaster recovery plan isn’t a “set it and forget it” process. You need to regularly test your plan, run mock disaster scenarios, and tweak your processes as your business evolves.

One of my clients, a growing SaaS company, tested their DRP during a simulated cyberattack. During the test, they realized their system recovery time was slower than they anticipated. This allowed them to adjust and fine-tune their plan before it was too late.

Now, let’s talk money. It’s one thing to know a DRP is necessary for protecting your business—it’s another to understand just how much it can save you in the long run.

Minimizing Downtime Costs

The more time your business is down, the more money you lose. Downtime costs businesses an average of $5,600 per minute, according to Gartner. For SMBs, these losses can stack up quickly. When your systems go down, you lose productivity, customer orders, and the ability to deliver services. That’s money walking out the door.

A well-thought-out DRP can drastically reduce downtime. One client I worked with, a healthcare service provider, was able to recover from a system crash in under two hours because they had a cloud-based backup in place. This meant they lost very little revenue compared to businesses that might have been down for days.

Protecting Your Reputation

In today’s digital world, customer trust is everything. If you can’t deliver your services or products on time, or worse—lose their data—you risk damaging your brand’s reputation. A strong DRP shows your customers that you take their security and experience seriously.

For example, after a service disruption, I helped a financial consulting firm send out proactive communications to clients, reassuring them that their data was safe and that operations were back up and running. This transparency helped them retain clients and avoid reputational damage.

Compliance and Legal Protection

In certain industries, having a DRP is not just a best practice—it’s a legal requirement. For example, businesses in healthcare, finance, and other regulated industries need to demonstrate that they can recover critical data following a disaster to stay compliant with regulations like HIPAA and GDPR. Failure to comply can result in fines or lawsuits, which could cost your business millions.

A solid DRP ensures your business stays compliant and can avoid the legal consequences of a breach or data loss.