RSS

Dealing with disaster

Article Date:  Oct 12 2006


It’s understandable that the day-to-day concerns for an owner-manager will be to keep customers happy, while also seeking opportunities to grow the business. Quite often, a disaster recovery plan will be at the lower end of a ‘to do’ list. Besides, when it comes to a business disaster, that sort of thing always happens to somebody else.

For Nick Robertson, co-founder of online fashion retailer ASOS, the ‘it will never happen to me’ attitude proved costly. In Autumn 2005, the company moved depots to a brand new warehouse in a Hemel Hempstead industrial park and the company began to move up the gears as the Yuletide orders flooded in.

Early on the morning of 11 December 2005, however, a series of huge explosions at the Buncefield oil storage terminal seriously damaged ASOS’ new warehouse nearby.
‘In terms of disaster recovery we had no back-up,’ explains Robertson. ‘As a fast-growing company, the dynamics of the business meant that we had just one distribution centre.

Fortunately for Robertson, the nature of the business meant that, due to high demand, it only had around six weeks’ of stock. However, the ASOS.com website – the company’s only shop-front – was closed to transactions for five and a half weeks. ‘We shifted our staff from near Luton to the London office to complete the refunds of the 19,000 undeliverable orders,’ remembers Robertson.

According to a survey by the DTI, 70 per cent of businesses that suffer a ‘discontinuity’ in trading – not even necessarily five weeks of it – will be forced to cease trading. And, while we’re running with the stats, a Chartered Management Institute survey this year found that only 46 per cent of SMEs have business continuity plans and that just 37 per cent of those with plans will rehearse or exercise them.

Risk awareness

So, despite the possibility of going belly-up and losing everything, business owners’ perception of potential danger is fairly low. ‘SMEs don’t have the resources and management capability to make plans,’ asserts Dr Greg French, managing director of disaster recovery specialist Belfor. ‘They think that conducting contingency planning impacts their bottom line. Compiling a plan and testing it works is considered unnecessary because they don’t foresee anything bad happening to their business.’

Another reason to give serious consideration to disaster recovery is the introduction of a kitemark for continuity plans, British Standard 25999, which is expected to come into practice in 2007. It won’t be compulsory, but large firms that comply may insist their small suppliers have one.

Generally, the first step for a company with little or no contingency planning is just to start backing up your electronic data and taking it home at night. An advantage that growing businesses have over their bigger brothers is that it’s fairly cheap to get small amounts of data storage, a relatively easy disaster recovery technique. There are a vast variety of IT service providers out there that will very economically offer remote data storage and hosting arrangements, so staff can upload work files onto any home computer.

Comments 

There are currently no comments on this article

Sign up and get...

  • Regular GrowthBusiness newsletters
  • Post comments on articles
Sign up

Cut your speed to market and your costs!

FedEx Express has now created an account tailored perfectly for new small businesses. Instant account setup, online shipping, proof of delivery and an immediate discount of up to 15% off standard rates. Speed up your supply chain and gain the edge on your competitors! Visit: www.fedex.com/gb/smallbusiness

Looking to recruit?

Whichever role you are looking to fill you can be sure that Adecco only selects those candidates with a 'Can Do, Will Do, Will Fit' attitude. Better visit the people finding the people for London 2012.

Want help meeting your business objectives?

The Open University allows your staff to develop quickly, while causing minimal disruption to business operations. We can create solutions that help you to develop talent, increase professional skills and resolve business critical matters. Click to find out more.

Research

  • From video games developers to firms of architects, creative businesses of all kinds struggle to get adequate financing due to a misconception that they cannot be analysed systematically, claims a new report. The study comes from the Centre for Creative Business (CCB), a joint venture between London Business School and University of the Arts London.

Directors' Pay on AIM 2008

What is the average AIM company paying its chief executive? Who are AIM’s highest- and lowest-paid chief executives?

Global Technology Review 2008

Who are the world’s 200 most influential IT companies across sales, revenue growth, profits and net margins? Read more in the Global Technology Review 2008

More

Events Calendar

Investor AllStars 2009

23rd September, London Hilton, Park Lane

The CANACCORD Adams Media Magnate Awards 2009

26th March, Vinopolis, London

Rosenblatt New Energy Awards 2010

25th February, Natural History Museum, Cromwell Road, London SW7 5BD

More

More Analysis: Leadership & Management

Reinventing the media

These are testing times for media businesses. GrowthBusiness catches up with the winners of the Canaccord Adams Media Magnate Awards to find out how they are handling the various challenges they face. 

Save the world, quit your job

The global economy needs people like you to lead it out of recession, writes Simon Cook, CEO of venture firm DFJ Esprit.

The alpha leader in turbulent times

Forceful ‘alpha’ types are good at overcoming obstacles to get things done: perfect in a recession, you would have thought. But tough times can also bring out the ugly side of their dominant personalities.

Advertisement

Poll

Are you seeing green shoots?



Have your vote on current issues

People who read this also read

  • Q&A: Finding an investor

    I am an entrepreneur, I have a great idea but no investors, what can I do?
  • Q&A: A VC's expected return

    What rate of return would a venture capitalist generally expect?
  • Attracting funding in a recession

    Sally Goodsell, CEO of regional funding organisation Finance South East, explains how businesses can win private investment in the midst of a downturn.
  • Going for grants

    It’s not easy to get government grant funding (for which the agencies involved make few apologies) but there are genuine opportunities available for those who persevere. Ernst & Young Director Nigel Wilcock demystifies the process.

Active Advisers: Business Continuity Adviser

Active Advisers
Company Name Tel
Sentinel Solutions Mr P Lyons 01372 802699
Pentire Solutions Mr R Draper 01444 257088
Milton PA Mr I Ross 07867 804551
MSTA - Michael Bews Associates Mr M Bews 020 7723 7676
Link Associates International Mr R W W Baldwin 01564773658
Total Continuity Management 0207 289 4991
2C Consulting Mr P Barnes 07879 408928
Computer People Mr K Stevens 01295712051
Parkinson Howe 0161 484 0070
     

White Papers

12 Key Points to Consider When Selecting a Network Scanning Solution

Discover the 12 key points your company should consider before you evaluate and select a vulnerability assessment solution.

15-Minute Guide to Elevating the Customer Experience Through Statements

This guide focuses on the importance of customer statements, in particular the vital role they can play in marketing an organization's products and services, building and maintaining brand awareness, and reducing customer service costs.

15-Minute Guide to Intelligent Capture

Intelligent capture enables organizations to cope with enormous volumes and varieties of documents, accelerate information time to value, and reduce the IT burden of supporting multiple point solutions.

More

Take part in our competition and win a laptop

Growthbusiness.co.uk has teamed up with Insurantz.com to find out from you the secret of your business's longevity.

– Is it having a knack for hiring the right people or knowing that if you want something done properly, you need to do it yourself?

– Are you adept at reacting to changing market conditions and going the extra mile for your customers?

– Have you always had a keen eye for the numbers or made sure you have someone on board who does?

If your business has proven itself over a number of years, or if you know of a great local business and think it should be entered, then we want to hear about it!

A judging panel will draw up a shortlist of entrants for you to vote on to decide who will become the Growth Business Local Legend.

The winning company will receive computer equipment worth up to £500, plus £1,000 of business insurance (or free business cover up to an annual premium of £1,000 for larger businesses) all courtesy of our partners at Insurantz.com.

All shortlisted businesses will receive marketing collateral to promote your entry and encourage support from your customers and business associates. Everyone who enters the competition will automatically receive a 10% discount voucher code off insurance products bought from Insurantz.com.

To access the discount voucher code, please complete the survey.

At Insurantz..com, we encourage entrepreneurship, so start-up businesses are not charged extra when other insurers may decline or charge more. Insurantz.com offers a double-the-difference price guarantee on premiums where a better deal is found within 14 days of the cover start date.

Terms and conditions apply

Click here to enter the