Risk Management

Disaster Recovery Planning for SMBs

AL

Nicholas Soliz

Senior IT Consultant

When disaster strikes—whether from ransomware, hardware failure, natural disasters, or human error—do you have a plan? Most small and medium-sized businesses don't, and the statistics are sobering. Without proper disaster recovery planning, the consequences can be devastating.

93%

of companies without disaster recovery that suffer a major data loss are out of business within one year

The good news? Effective disaster recovery doesn't require enterprise-level budgets. With the right approach, SMBs can create comprehensive disaster recovery strategies that ensure business continuity without breaking the bank.

Understanding RPO and RTO

Before diving into solutions, you need to understand two critical metrics that drive every disaster recovery decision:

Recovery Point Objective (RPO): How much data can you afford to lose? This determines your backup frequency. If your RPO is one hour, you need backups at least every hour. If it's 24 hours, daily backups suffice. Consider the question: if you lost all data changes from the past [X hours], could your business continue operating?

Recovery Time Objective (RTO): How quickly must you restore operations? This determines your recovery method. If you need systems back online within two hours, you need different solutions than if you can tolerate two days of downtime. Ask yourself: how long can our business function without access to critical systems?

These objectives vary by system and business function. Your email might require a one-hour RPO and four-hour RTO, while less critical systems might tolerate 24-hour RPO and 48-hour RTO. Understanding these requirements helps you allocate resources appropriately.

The 3-2-1 Backup Rule

The foundation of any disaster recovery plan is solid backup strategy. Follow the industry-standard 3-2-1 rule:

This approach ensures that no single failure mode—hardware failure, ransomware, natural disaster—can eliminate all copies of your data. It's redundant by design, which is exactly what you want when it comes to disaster recovery.

đź’ˇ Modern Interpretation

Today's 3-2-1 rule often looks like: production data on servers, local backup on a NAS device, and cloud backup with a service like Azure or AWS. This configuration provides quick local recovery for common issues and offsite protection for major disasters.

Automated vs Manual Backups

Manual backup processes fail eventually. Someone forgets, gets busy, or leaves the company, and suddenly you discover your last backup is months old—usually at the worst possible moment.

Automated backup systems remove human error from the equation. Set them up once, verify they're working, and they run reliably day after day. Modern backup solutions can schedule backups during off-hours, verify backup integrity automatically, and alert you to any failures.

The cost difference between automated and manual backups is minimal, but the reliability difference is enormous. If you're still running manual backup processes, automating them should be your first priority.

Testing: The Often-Overlooked Critical Step

An untested backup is no backup at all. You must regularly verify that your backups work and that you can actually restore from them. Too many organizations discover backup failures only when attempting recovery during an actual disaster.

Implement regular testing schedules:

These tests serve dual purposes: they verify your technical capabilities and train your team on recovery procedures. During an actual disaster, stress levels are high—having practiced the process beforehand makes recovery smoother and faster.

🎯 Pro Tip

Document every test. Record what worked, what didn't, and how long each step took. This documentation becomes invaluable during actual recoveries and helps you refine your procedures over time.

Beyond Backups: Business Continuity Planning

Disaster recovery isn't just about data—it's about maintaining business operations. Your plan should address:

Communication Protocols

When systems are down, how do you communicate with employees, customers, and vendors? Maintain updated contact lists stored in multiple locations (not just on your email server). Designate alternate communication channels like personal phones or external messaging services.

Alternative Work Arrangements

If your office becomes inaccessible, can employees work remotely? Do they have necessary equipment and access? Cloud-based systems and remote access capabilities become critical components of business continuity.

Critical Process Documentation

Document key business processes and store these documents securely offsite. If key personnel are unavailable during a disaster, others need to know how to execute critical functions. This includes vendor contacts, account numbers, passwords (stored securely), and step-by-step procedures.

Financial Reserves

Disasters often involve unexpected expenses—emergency IT support, temporary equipment, alternative workspace. Having financial reserves or pre-arranged credit lines helps you respond quickly without adding financial stress to operational stress.

Cloud Services and Disaster Recovery

Cloud services fundamentally change disaster recovery dynamics for SMBs. They provide enterprise-grade redundancy and geographic distribution that would be impossibly expensive to implement on-premises.

Major cloud providers maintain multiple data centers across different regions. When you use cloud services, your data automatically exists in multiple locations, providing inherent disaster recovery capabilities. If one data center fails, your services continue from another location.

For critical systems, consider cloud-first or hybrid approaches. Microsoft 365, for example, provides email, file storage, and collaboration tools with built-in redundancy and disaster recovery. Even if your office burns down, your employees can continue working from any location with internet access.

Ransomware-Specific Considerations

Ransomware has become the most common disaster scenario for SMBs. Your disaster recovery plan must specifically address it:

Never assume you'll pay the ransom and get your data back. Many ransomware groups don't provide working decryption even after payment, and paying funds future attacks. Your disaster recovery plan should assume you're recovering entirely from backups.

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Getting Started: A Practical Action Plan

Building a disaster recovery plan doesn't happen overnight, but you can start making progress immediately:

  1. Identify critical systems and data: What absolutely must be protected and recovered first?
  2. Define RPO and RTO for each system: How much data loss and downtime can you tolerate?
  3. Implement automated backups: Start with the 3-2-1 rule as your baseline
  4. Document recovery procedures: Write step-by-step guides for restoring each critical system
  5. Test your backups: Verify you can actually recover before you need to
  6. Train your team: Make sure everyone knows their role during a disaster
  7. Review and update regularly: Business changes, technology changes—your plan must evolve

The Bottom Line

Disasters are inevitable—hardware fails, ransomware attacks succeed, natural disasters occur. The only question is whether you'll be prepared when disaster strikes your business. Without a tested disaster recovery plan, you're gambling your business's future on luck.

The investment in disaster recovery planning pays for itself the first time you need it—and might save your business. Start building your plan today, even if you begin with just the basics. Every step toward better disaster recovery reduces your risk and increases your resilience.

Your business deserves the protection that proper disaster recovery planning provides. Don't wait for a disaster to wish you'd prepared.