"Losing vital information can be a devastating blow to a small business - one from which they may never recover"

It is an understatement to say that the past few years have seen more than their fair share of crises: floods across many parts of Britain, an economic downturn, and of course, the events of September 2001 and the bombing of the London Underground system in 2005. Those terrorist attacks, most significant among the crises, have forever changed the way we live and the way we do business.

The attacks only serve as a reminder that we need to be prepared should disaster strike our homes and businesses. Being fully prepared for disaster is the most effective way for businesses to survive these types of events.

One of the most important parts of this involves the protecting, or "backing up," of critical data that can help improve the chances of long-term survival of a business.

While large businesses typically realise the importance of redundancy and backing up data, small businesses generally have extremely limited IT budgets and may not be inclined to incorporate this practice into their regular operating expenses and procedures.

Today, however, it is more critical than ever that businesses of every size address the issue of data protection. Losing vital information such as accounts payable, accounts receivable or inventory management can be a devastating blow to a small business - one from which they may never recover.

In fact, a recent Gartner study estimates that two out of five businesses that experience a disaster will go out of business in five years. *

The easiest and safest way to prepare for catastrophe is to back up the data stored on computer systems. What small businesses may find surprising is that backing up data doesn't have to be expensive, but what can often be difficult is making the commitment to take action.

A first step is to ask some basic questions: Do I back up my data? If so, how often? What information is most critical to my business? Do I have a plan for data protection and recovery? How much is my business at risk if my data is lost forever?

From the answers to these questions, the hardware decisions are often clear ? and often inexpensive. Three ways that are particularly effective for small businesses are devices that can be installed inside or outside computers such as Zip drives, tape backup drives, and mirrored hard drives in servers. Backup devices are ideal for small businesses because of their low cost and ease of use. Mirroring, which involves installing a redundant hard drive in a server, works by simultaneously copying data to a second drive, so if one hard drive fails the data is not lost.

Rapidly growing small and medium-sized companies (SMEs) should consider more sophisticated data protection and recovery methods such as redundant servers and network storage devices. Keeping servers and storage in multiple locations ensures that data will be preserved should one location be struck by disaster.

One additional alternative to consider is an emerging model called managed storage, where third-party companies sell storage space like a utility over the Internet. Clients pay only for the storage space they use and can use as little or as much space as they need.

Fortunately, we have seen some evidence suggesting that SMEs are taking precautions to protect their data more rigorously. We have heard directly from medium-sized businesses that disaster preparation and recovery are now top concerns, and they are looking for guidance on ways to keep their data safe.

Businesses constantly face natural, competitive and unplanned threats. It's increasingly clear that disasters can strike anywhere, from rural areas to city centers, without notice.

With our lives and businesses dependent on computers and the information and data that resides on them, taking steps to ensure that the data of your small or medium-sized business is protected in the event of a disaster is not only prudent, it is essential.

* Aftermath: Disaster Recovery, by Vic Wheatman, 21 September 2001

Written by Simon Calver, general manager and vice president, home and small business division, Dell UK and Ireland