Office of Economic Development | Town of Islip

It is no question that we are facing uncertain times for businesses as governmental shutdowns of non-essential industries continue. As a result, the need for businesses to revisit and reevaluate their disaster recovery business continuity plans has never been greater. While it can be difficult to traverse this new landscape, it is important to acknowledge that this will not continue forever, and a firm plan and re-evaluation of resources can give businesses a fair chance at outlasting the current economic situation. In this article, the Town of Islip Office of Economic Development outlines a few tips for businesses’ disaster planning and recovery in light of the current COVID-19 pandemic.

Evaluate Company’s Short-Term Liquidity

Businesses that have not already done so should make sure to prepare a 13-week cashflow model that can be referenced to and updated daily. It is important to instill short-term cash flow monitoring discipline that is flexible enough to account for potential cash flow pressures, and best-case, medium-case, and worst-case scenarios should be built into the plan for optimal efficiency. Businesses should also make plans to share their analysis with their bank, investors, suppliers, and management committee routinely.

Review Strategic Partners and Negotiate Terms and Conditions

An important facet of establishing a business disaster plan is to evaluate contractual agreements and consider requesting different or looser terms for longevity’s sake. Draw a clear line between must-haves and what your business could do without momentarily. Also, consider if all critical vendors and strategic partners will be around for the long haul and plan accordingly. During tumultuous times for businesses, it is also ideal to stock up on necessities and have an alternative source ready in case your business needs to temporarily change vendors.

Consider Utilizing Different Financing Sources

Having a 13-week cash flow plan can give you a measure of reassurance, but it is of paramount importance that businesses are prepared for their worst-case scenarios. This is particularly true for small or mid-sized companies. A business line of credit can be an immensely valuable tool for ensuring that your business can fill short-term financial necessities and meet working capital requirements such as purchasing inventory, repairing crucial equipment, and financing marketing campaigns. It is a great idea to think about gaining peace of mind via alternate financing sources even if you do not believe your business needs it right now, as it may very well keep you from falling into longer term predatory loans in the event that you need assistance later.

Test Infrastructure for Remote Working

The COVID-19 crisis has quickly shown the importance of having an infrastructure that can properly facilitate employees working from home. Companies that have not already supplied laptop computers, monitors, keyboards, and other necessary technology to employees should do so quickly and efficiently. Remember the importance of reevaluating your business’s work from home policies and confirm that your business has adequate remote working capabilities such as VPN access that is up to date. It is also important to ensure that employees have access to the Internet and voice conferencing, and that they understand how to properly use them.

The Town of Islip Office of Economic Development acknowledges that, while the current pandemic is the catalyst for a host of new challenges for businesses, the ability to create and adhere to strong disaster recovery and business continuity plans plays an indispensable role in ensuring that your business succeeds in this ever-changing economic landscape.

To learn more about how our office can help with your business continuity and disaster recovery plans, please reach out to us at ecodev@islipny.gov or (631) 224-5512.

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