Disasters can manifest for businesses in many ways. Natural disasters obviously cause business interruption, but even small-scale power outages can be the biggest threat to mission-critical applications, data-center performance, or life-saving medical equipment. Understanding the true cost of business interruption due to downtime, outages and failures is a key part in properly assessing company vulnerability. Translating that vulnerability into a disaster recovery plan confronts the realities of unplanned downtime and can save your business.
Each business is effected differently. Here are some industry examples of the cost of downtime:
Downtime can cost web application companies $5,600 per minute and up to $300,000 per hour
Almost 40 percent of small businesses never reopen their doors following a disaster.
The statistic that matters most to business owners and property manager are real numbers based on actual operation cost. To calculate lost revenue due to business interruption, use this equation:
| LOST REVENUE | = | (GR/TH) x I x H |
| GR | = | gross yearly revenue |
| TH | = | total yearly business hours |
| I | = | percentage impact |
| H | = | number of hours of outage |
Backup Power System Failure
Businesses with serious consequences from power outages typically make heavy investments in backup systems for temporary power outage mitigation. A proper schedule of maintenance and testing is required for confidence in any backup power system. In case of a natural disaster, localized backup systems can fail due to unforeseen damage. Having access to a regional or national fleet of portable generators may be the only solution in some severe cases.
Backup Power System Capacity
In an emergency, well-maintained power backup systems can alleviate immediate issues. But with widespread outages or large scale disasters, these systems may need to be used for longer than originally planned. Despite efforts and investment in power and infrastructure robustness, many organizations have not adequately assessed their power needs or kept them growing at a pace to match their power needs. Whether not enough power is accessible or that power is not able to be maintained for a long enough term, this mismatch of need vs. capacity can result in big financial losses.
Organizations should address and assess their threats to operations due to an unplanned or even protracted power outage. Garrett McKenzie can get your business back in business quickly. Our mobilized fleet of portable generators arrives on location and can deliver not only power for your continued operation, but also for our professional recovery equipment. We arrive with power and the manpower to connect you to business-saving equipment and keep you going no matter how long our power, restoration or remediation services are needed. If you’ve experienced a disaster and are in need of our services call us 24/7 at 1-877-469-1600.
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