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Study: 40 percent of businesses fail to reopen after a disaster

There is nothing worse than trying to pick up the pieces following a natural disaster. Any resident of New York or New Jersey in areas that were affected by Super Storm Sandy can tell you that.

Businesses can be affected the same way. However, while residents are able to eventually get back to life as normal, even if it is in a new home, many companies are not so lucky. According to a report from the Federal Emergency Management Agency (FEMA), 40 percent of businesses do not reopen following a disaster. On top of that, another 25 percent fail within one year.

If you think that getting past this initial time gets your company out of the woods, think again. The United States Small Business Administration found that over 90 percent of companies fail within two years of being struck by a disaster.

While government aid and insurance may help businesses physically get the doors open again by helping with the cleanup and replacement of office supplies, it can not help if records and important documents have been lost. For this, companies need to be proactive with their approach.

“To survive, business owners must prepare for emergencies and take steps to prevent, or minimize, the effect of disasters,” a Chamber 101 report reads.

As the old saying goes, it is better to be safe than sorry. This is why partnering with a document storage company that specializes in offsite, local and secure management of business records is crucial. Not only do decision-makers get the peace of mind knowing that in the event of a disaster their documents are safe, but they also get the added bonus of more space in the office and a more organized storage system.