Realty Times October 4, 2007

Time to Disaster-Proof Your Office
by Rick Salmeron

How do you feel about spending your upcoming summer nights sifting through piles of displaced paperwork? What about working through weekends to recover information lost from your client database? Or spending your hard-earned vacation money to redraft key legal documents?

I don't know about you, but I'd much rather enjoy the warm, relaxing summer months with the peace of mind knowing that my business is prepared if a disaster strikes. Accidents do happen -- big and small -- regardless of the time of year.

Hurricane Katrina is a foremost example of how one's business can come to a close at an instant. Tornadoes, fires, and earthquakes don't care about your busy schedule, either. But it's not just natural disasters that can cause widespread destruction. Terrorist attacks can put entire regions out of commission. Even more commonplace disasters, such as house fires and burglaries can be devastating if you haven't taken steps to deal with these circumstances.

Regardless of the scenario, losing access to your office and your files can cause tremendous emotional stress. As a real estate professional, what can you do to make your business disaster-proof? The more prepared you are for a disaster, the easier it will be to deal with the aftermath and get back to serving clients.

Here are some preparedness tips for you and your team:

  • Have Cash On Hand. ATMs don't work without power. And small local banks often freeze electronic funds if they can't access their system. In either case, make sure you have enough cash on hand to cover immediate expenses.

  • Get A Retro-Telephone. Old-fashioned corded phones don't require electricity so they are functional during power outages (assuming the phone company isn't affected by the outage). And, since corded phones are stationery, you always know where they're located.

  • Backup Your Files Online. Backing up your data onto CD-ROMs and storing them at your office is a good practice, but not much help if your office has been obliterated. Instead, consider web-based backup services. Web-based backup services store your data in a far away location -- yet your files are easily accessible via the internet. Should your hard-drive crash, your computer's information is intact. It's as fresh as your last backup and accessible at any other computer with an internet connection. Many of these services even backup your data on an automated schedule. And yes, people are understandably worried about security over the internet. But some services even encrypt data for you, adding an additional level of security. Remember, the more of your vital data and information you have online, the easier it can be to recover from catastrophe.

  • Copy Tough-to-Replace Documents. Make copies of irreplaceable documents and store them in a distant, separate location. This might include marketing materials, specific notes, or special papers in the client's file. Alternatively, you may even want to scan the files and then back them up using a web-based backup service (see above).

    Keep in mind that some documentation that appears irreplaceable really isn't. You can always get copies of recent tax returns from the IRS or from your tax professional. Likewise any legal agreements drafted for your business or personal life, such as employment agreements, wills, and powers of attorney, can be reproduced from your attorney's office. Closing documents from past clients could be recovered at the title company as well.

  • Drape Your Office. If you have advance warning before leaving your office in the event of a hurricane or flooding, prop filing cabinets off the ground and put plastic bags over your computer, printer, and other electronic equipment. This will help prevent water damage. You should also move equipment out of the humid, non-air-conditioned environment as soon as possible to avoid corrosion.

  • Save For The Long Haul. As trite as it sounds, one of the best ways to prepare for disaster is to save as much as you can on an ongoing basis. Not only will the savings contribute to your wealth accumulation, the discipline of regular savings will provide a short-term cushion if earnings are interrupted.

    Even the most responsible people can panic when unexpected disasters occur. The good news is that preparation trumps panic. I recommend that you take the time to imagine worst-case scenarios and then prepare for each of them. This process will help to ensure that your summers are spent the way they should be spent -- with lots of rest and relaxation.


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