Planning

Disaster Recovery BasicsFor Small Businesses

How to create a disaster recovery plan that ensures business continuity when the unexpected happens. Learn backup strategies, recovery objectives, and how to get your business back online quickly.

10 min read|Last updated: December 2025

About the Author: This guide draws from 32 years of hands-on experience as a certified Disaster Recovery Officer, Cybersecurity Engineer/Architect, and Network Engineer. With thousands of disaster recovery plans developed and tested across healthcare, finance, retail, and manufacturing sectors, these recommendations come from real-world recovery scenarios. Schedule a free DR assessment - do not wait until disaster strikes.

The Reality of Disasters

40% of small businesses never reopen after a disaster. 93% of companies without a disaster recovery plan who suffer a major data disaster are out of business within one year. The average cost of IT downtime is $5,600 per minute. Having a plan is not optional - it is survival.

Introduction

Disaster recovery (DR) is your plan for getting back to business after something goes wrong. "Disasters" are not just natural events like floods or fires - they include ransomware attacks, hardware failures, human errors, power outages, and vendor failures.

A good disaster recovery plan answers one critical question: How quickly can you get back to business, and how much data can you afford to lose?

What This Guide Covers

  • -Understanding recovery objectives (RTO/RPO)
  • -Identifying critical systems and data
  • -Backup strategies that actually work
  • -Step-by-step recovery procedures
  • -Testing and maintaining your plan
  • -Cloud and SaaS considerations

Understanding RTO and RPO

Before you can build a recovery plan, you need to understand two critical concepts that drive every decision in disaster recovery.

RTO - Recovery Time Objective

How long can you be down?

The maximum acceptable time from when a disaster occurs until systems are back online. If your RTO is 4 hours, you need to be operational within 4 hours of a failure.

Example: An e-commerce site with RTO of 1 hour cannot afford a backup solution that takes 8 hours to restore.

RPO - Recovery Point Objective

How much data can you lose?

The maximum acceptable age of data when restored. If your RPO is 1 hour, you need backups at least every hour - anything newer is lost.

Example: A medical practice with RPO of 15 minutes needs near-continuous backup - nightly backups would lose an entire day of patient records.

System TypeTypical RTOTypical RPO
Critical (e-commerce, patient care)Minutes to 1 hourMinutes
Important (email, file shares)4-8 hours1-4 hours
Standard (internal apps)24-48 hours24 hours
Low priority (archives)Days to weeksDays

Business Impact Analysis

Before you can protect your systems, you need to know which ones matter most. A Business Impact Analysis (BIA) identifies your critical systems and the cost of their downtime.

Questions to Answer

1. What systems are critical to operations?

  • -What systems must be running for the business to function?
  • -What systems generate revenue or serve customers?
  • -What systems have regulatory or legal requirements?

2. What is the cost of downtime?

  • -Lost revenue per hour/day of downtime
  • -Employee productivity impact
  • -Customer impact and potential loss
  • -Regulatory fines or legal exposure
  • -Reputation damage

3. What are the dependencies?

  • -What other systems does each critical system depend on?
  • -What third-party services are required?
  • -What order must systems be restored in?

Pro Tip: Create a Tiered System

Categorize systems into tiers (Tier 1 = Critical, Tier 2 = Important, Tier 3 = Standard). This helps prioritize recovery efforts and allocate backup resources appropriately. Not everything needs instant recovery - and trying to make it so is expensive.

Backup Strategies

Backups are the foundation of disaster recovery. But not all backups are created equal - and a backup you cannot restore from is not a backup at all.

The 3-2-1 Backup Rule

3

Copies of your data (original + 2 backups)

2

Different storage media types

1

Copy stored offsite

Modern addition - 3-2-1-1: One copy should be air-gapped or immutable (cannot be modified or deleted) to protect against ransomware.

Backup Types

Full Backup

Complete copy of all data. Simplest to restore but takes longest to create and uses most storage.

Best for: Weekly or monthly baseline backups

Incremental Backup

Only backs up data changed since the last backup (full or incremental). Fast and efficient but requires all incrementals to restore.

Best for: Daily or hourly backups

Differential Backup

Backs up all data changed since the last full backup. Larger than incremental but only needs the full + one differential to restore.

Best for: Balance between speed and restore simplicity

Image-Based Backup (Bare Metal)

Complete snapshot of entire system including OS, applications, and data. Can restore to completely new hardware.

Best for: Servers and critical workstations

Backup Storage Options

OptionProsCons
Local NAS/SANFast backup/restore, no internet neededVulnerable to local disasters
Cloud BackupOffsite, scalable, often immutableSlower restore, ongoing costs
Tape/RemovableTrue air-gap, long retentionSlow, manual handling required
HybridFast local + offsite protectionMore complex, higher cost

Data Recovery Planning

Having backups is only half the battle. You need documented, tested procedures for restoring data when disaster strikes.

Recovery Procedure Documentation

Every recovery procedure should document:

  • -What: Specific system or data being recovered
  • -Where: Backup location and credentials (stored securely offline)
  • -How: Step-by-step restore instructions
  • -Who: Responsible person and alternates
  • -Dependencies: What else must be running first
  • -Verification: How to confirm successful recovery

Critical: Store Recovery Docs Offline

If your recovery documentation is stored on a system that needs to be recovered, you have a problem. Keep printed copies in a secure location, and store digital copies in a location independent of your primary systems (different cloud account, safe deposit box).

System Recovery Planning

Beyond data, you need to plan for recovering entire systems - operating systems, applications, and configurations.

Recovery Options by Scenario

Hardware Failure

  • -Keep spare hardware or have a vendor with fast replacement SLAs
  • -Image-based backups allow restore to different hardware
  • -Cloud-based DR can spin up replacement systems quickly

Ransomware/Malware

  • -Isolate affected systems immediately
  • -Verify backup integrity before restore (was it infected?)
  • -Restore from known-good backup (air-gapped/immutable)
  • -Rebuild systems from scratch if unsure of infection scope

Site Disaster (Fire, Flood)

  • -Activate offsite/cloud recovery location
  • -Restore from offsite backups
  • -Redirect users to alternate location
  • -Consider cloud-hosted DR for faster activation

Communication Plan

During a disaster, clear communication is critical. Who needs to know what, and when?

Contact Lists (Keep Updated and Offline)

  • -IT team members (including personal cell phones)
  • -Executive leadership
  • -Key vendors (IT provider, hosting, ISP, etc.)
  • -Cyber insurance carrier and claims number
  • -Legal counsel
  • -PR/communications (if applicable)

Communication Responsibilities

  • -Employees: What is happening, when to expect updates, what to do
  • -Customers: Service status, expected resolution, alternative contact methods
  • -Regulators: Required notifications (breach notification laws)

Testing Your Plan

An Untested Plan Is Not a Plan

The only way to know your disaster recovery plan works is to test it. Regularly. Plans that sit on a shelf untested will fail when you need them most.

Types of DR Tests

1. Document Review (Quarterly)

Walk through the plan on paper. Are contacts current? Are procedures still accurate? Have systems changed? Low effort, catches obvious gaps.

2. Tabletop Exercise (Semi-annually)

Gather the DR team and walk through a scenario verbally. "It is Monday 9 AM and ransomware just encrypted all servers. What do we do?" Identifies gaps in procedures and communication.

3. Backup Restore Test (Monthly)

Actually restore files or systems from backup to verify they work. Test different backup sets. This is the minimum testing every business should do.

4. Full DR Test (Annually)

Simulate an actual disaster and execute the full recovery plan. Can be done on a weekend or with a parallel environment. Most thorough but most disruptive.

Cloud & SaaS Considerations

Cloud services change the DR equation - but do not eliminate the need for planning. Many businesses incorrectly assume cloud providers handle all backup and recovery.

Common Misconception

"It is in the cloud, so it is backed up." - This is often false. Most SaaS providers protect against their infrastructure failures, not your data loss. Deleted a file? Ransomware encrypted your cloud storage? That is usually your problem.

Cloud DR Considerations

Microsoft 365 / Google Workspace

  • -Native retention is limited (deleted items recycle bin expires)
  • -Consider third-party backup (Veeam, Datto, Backupify)
  • -Export critical data regularly

SaaS Applications (CRM, ERP, etc.)

  • -Review vendor SLA for backup and recovery
  • -Use data export features regularly
  • -Consider SaaS backup solutions for critical apps

Cloud Infrastructure (AWS, Azure, GCP)

  • -You are responsible for backup configuration
  • -Use native backup services (AWS Backup, Azure Backup)
  • -Consider cross-region replication for critical data
  • -Infrastructure as Code makes rebuilding faster

Industry-Specific Requirements

Many industries have specific requirements for disaster recovery and business continuity.

Healthcare (HIPAA)

  • - Contingency plan required (45 CFR 164.308(a)(7))
  • - Data backup plan with retrievable exact copies
  • - Disaster recovery plan for restoration of lost data
  • - Emergency mode operation plan
  • - Testing and revision procedures

Financial Services

  • - Business continuity plans often required by regulators
  • - Annual testing requirements common
  • - RTO/RPO documentation
  • - Third-party risk management (vendor DR)
  • - Audit trail preservation

Retail / PCI-DSS

  • - Backup media stored securely
  • - Backup integrity verification
  • - Restore testing at least annually
  • - Cardholder data backup encryption

Government Contractors

  • - NIST 800-171 contingency planning controls
  • - System backup requirements
  • - Tested recovery procedures
  • - Alternate processing site considerations

Common Mistakes to Avoid

Never testing backups

Backups fail silently all the time. If you have never tested a restore, you do not have backups - you have hope. Test monthly at minimum.

No offsite or air-gapped copy

Ransomware targets connected backups. If all your backups are on the same network, they can all be encrypted. Keep at least one copy truly isolated.

Assuming cloud means backed up

Microsoft 365, Google Workspace, and most SaaS do not provide true backup. User-deleted data, ransomware, and malicious actors can still cause permanent data loss.

Outdated recovery documentation

Systems change, staff changes, vendors change. If your DR documentation is a year old, it is probably wrong. Review quarterly at minimum.

No communication plan

During a disaster, everyone panics. Who calls who? Who talks to customers? Who makes decisions? Figure this out before you need it.

Single point of failure in DR

Only one person knows the backup passwords. Only one person can restore systems. What happens when they are on vacation - or leave the company?

When to Get Professional Help

While this guide covers the fundamentals, disaster recovery planning can be complex. Consider professional assistance when:

  • -You have compliance requirements (HIPAA, PCI, SOC 2)
  • -Downtime would be extremely costly to your business
  • -You have complex IT environments (multiple locations, hybrid cloud)
  • -You lack in-house expertise for DR planning
  • -You need help selecting and implementing backup solutions

Free Disaster Recovery Assessment

Get guidance from a certified Disaster Recovery Officer with 32 years of hands-on experience and thousands of DR plans developed and tested. We help SMBs build recovery capabilities without enterprise budgets. Our expertise comes at no additional cost - we work with 200+ vendors to find the right backup and DR solutions at wholesale pricing.

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