Unexpected things happen–fires, floods, tornadoes. Or a shift in your family or personal life can have a very direct effect on your home business. It helps if you have a contingency plan and are prepared in case an emergency presents itself. While this won’t always be possible or probable. Thinking through what you might do in case of an emergency can help you feel better prepared.
One of the realities of running a home-based business is that if there is a house or home emergency, both your family life and your livelihood can be affected. Whereas, if you work outside of the home, if the household plumbing gets backed up or there is a fire in the garage, you can still go to work while you are temporarily living elsewhere and making repairs to your home. Not so in a home-based business.
How portable your home business is will make a difference. Additionally, figuring out how to protect your records and work is another way to feel more prepared for an emergency. You may want to put important documents on a server or someplace where they can be accessed if your computer has a meltdown or cannot be used. If you keep paper files or money on site–it may be necessary to invest in a safe or strongbox where you can keep these things.
If you have inventory or product for your business, you will want to make sure it is insured and protected if you live in an area that is prone to flooding or other natural disasters. Regardless of whether you live in a “tornado zone” or not, it is important to make sure your home-owners or renter’s insurance policy covers your home business operations too.
The more diverse your business operations and having some savings and different income/revenue streams, the more likely you will be able to recover quickly in the case of a natural disaster emergency. Of course, none of us is completely emergency-proof–but a little planning can help lessen the blow.
See Also: Are You Prepared for a Financial Emergency?
Individual Disability Insurance
Emergency Fund and Non-Emergencies