Common Mistakes in Small Business Disaster Recovery (and How to Avoid Them)

August 8, 2025
Common Mistakes in Small Business Disaster Recovery (and How to Avoid Them)

Downtime hurts. For small businesses, it can be fatal. According to recent industry data, outages cost companies an average of $9,000 per minute. That’s a staggering figure when every dollar counts. 

But what’s even more concerning is how few small businesses are prepared to recover. A report from Inc. notes that 60% of small businesses shut down within six months of a cyberattack if they lack a recovery plan.

That’s why a disaster recovery plan for small businesses is essential. Recovery success depends not on perfect protection but on practical readiness. That means having a plan you can count on. One that doesn’t just exist on paper but comes alive when the worst happens.

This mindset aligns closely with the “Recover” phase of our S.E.C.U.R.E.™ Framework. Recovery isn’t a checkbox but a living, tested system that activates in real time. 

Below, we’ll explore the most common mistakes small businesses make in disaster recovery and how to avoid them using proven, strategic solutions.

disaster recovery plan for small business

1. Treating Disaster Recovery Like a One-and-Done Task

Many businesses create a disaster recovery plan once and never return to it. That’s dangerous. Threats evolve quickly, and what worked a year ago may fall short today. Cybercriminals innovate, infrastructure changes, and business priorities shift.

When recovery plans don’t stay aligned with these moving parts, they create a false sense of security. This can delay response times or completely derail recovery efforts.

Our DRaaS platforms, powered by Zerto, Veeam, and VMware, evolve with your business. Whether you’re scaling workloads, migrating to the cloud, or shifting compliance priorities, our solutions adapt without disruption.

2. Assuming Backup = Recovery

Backing up data is essential. But it’s not the same as recovering operations. A backup gives you copies. A recovery plan gives you continuity. 

The difference lies in the following details: 

  • Application dependencies
  • Configuration settings
  • Network access
  • User permissions

When businesses overlook those, recovery slows or fails.

This is where OTAVA’s “Undo” and “Recover” components come into play. Undo is about restoring operations quickly after mistakes or breaches, while Recover builds on that foundation by turning strategy into execution. 

The stakes are high. IBM’s most recent Cost of a Data Breach Report estimates that the average breach costs nearly $5 million. That cost balloons when teams can’t restore systems efficiently.

3. Not Testing the Plan in Real-World Scenarios

Writing a plan isn’t enough. Without testing, you don’t know if it works. Many businesses skip testing entirely, or they run through rehearsals under ideal conditions. That doesn’t reflect the pressure of a real-world disaster.

Testing under pressure exposes gaps. It also strengthens team communication and builds muscle memory.

We help clients test their recovery plans regularly, not just to check a box but to make sure everything works under pressure. Our team walks you through real-world scenarios so your systems and your people know exactly what to do when it counts.

4. Keeping All Your Eggs in One (Geographic) Basket

Many small businesses back up data to a second site that’s geographically close. On paper, that saves time and money. In reality, it invites risk. Regional events, such as floods, grid failures, or wildfires, can take out both the primary and secondary sites.

If your backup environment shares the same threat zone, your entire recovery strategy could collapse.

Our geographically distributed data centers reduce risk by design. Each site is located on a separate power grid, with redundant connectivity and isolation protocols. That ensures your data is safe, accessible, and recoverable.

5. Forgetting the Human Factor

Too often, businesses treat disaster recovery as purely technical. But plans fail when teams don’t know what to do. If employees are unsure of their roles or if contact trees break down, response time slows dramatically.

Effective recovery relies on people as much as tools. Cross-functional coordination, clear escalation paths, and contingency staffing make a measurable difference.

Our onboarding includes detailed team mapping. We help you identify stakeholders across departments and train each group on its role in the recovery process. We believe tools only work when teams know how and when to use them.

6. Overlooking Modern Threats Like Ransomware and SaaS Gaps

Cloud platforms have changed how businesses operate, but they haven’t eliminated the need for recovery. Platforms like Microsoft 365 and Google Workspace operate under a shared responsibility model. You manage the data while they manage uptime.

That means you’re responsible for recovery. If a ransomware attack hits your M365 environment, your provider won’t restore your data. You must have your own strategy.

Attackers know this. That’s why they now target backups directly. Immutable storage is no longer a luxury. It’s a requirement.

Our DRaaS and backup solutions include ransomware protection, immutable backups, and granular point-in-time recovery. These services are especially valuable for hybrid and remote-first organizations that rely heavily on SaaS tools and distributed networks.

7. Not Building a Disaster Recovery Plan for Small Businesses

Smaller companies often skip recovery planning entirely. It feels out of reach. Limited budgets, small IT teams, and competing priorities make disaster recovery feel like something “for later.”

But disasters don’t wait.

The good news is that DRaaS has leveled the playing field. Today’s solutions don’t require on-prem hardware or massive CapEx investments.

The market proves it. DRaaS is on track to grow from $10.7 billion in 2023 to $26.5 billion by 2028. That growth is fueled by small and midsize businesses that need enterprise-grade recovery without the enterprise price tag.

We design our DRaaS offerings specifically for small businesses. With flexible pricing, cloud-based architecture, and simplified onboarding, our disaster recovery plans for small businesses are realistic, effective, and affordable.

8. Failing to Revisit and Revise the Plan Regularly

Change happens fast. Tech stacks evolve, employees come and go, and compliance rules tighten. Yet many businesses forget to update their recovery plan after these changes.

An outdated plan can be worse than none. It gives teams false confidence, which delays action when response time is critical.

Best practice is to update your plan quarterly and immediately after major changes to infrastructure, personnel, or processes.

9. Not Planning for Compliance and Industry-Specific Risks

Regulations like HIPAA, PCI-DSS, and GDPR all have disaster recovery requirements. Small businesses often assume these rules only apply to large enterprises, but that’s a costly assumption.

Failure to meet compliance standards can result in steep fines, audits, and customer churn.

A compliant disaster recovery plan for small businesses includes secure, auditable processes, documented roles, and data protection policies that align with legal frameworks.

All our DRaaS and cloud backup solutions meet major compliance standards. We provide reporting, audit support, and encryption by default, making compliance easier and more defensible, especially for healthcare, finance, and e-commerce clients.

10. Thinking You Have to Do It Alone

Many small businesses rely on one generalist IT manager or have no internal tech support at all. That can make recovery feel overwhelming.

The truth is that disaster recovery requires specialized knowledge. From configuration planning to incident response drills, it’s more than one person can manage.

We act as an extension of your team. Our approach includes planning, implementation, testing, and recovery execution. We provide guidance at every stage, so you never face disaster alone.

disaster recovery plan for small business

Build Resilience Before the Next Outage Hits

Disaster recovery doesn’t require perfection. It requires preparation. Disaster recovery plans for small businesses should be tested, supported, and regularly updated to defend against chaos.

At OTAVA, we offer scalable, fully managed DRaaS and cloud backup services that give you confidence under pressure. Whether you’re a two-person startup or a growing regional brand, our team is here to help you recover quickly and securely.Let’s build your recovery plan today. Contact us or request a free IT assessment.

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OTAVA delivers secure, compliant, and scalable cloud, edge, and infrastructure solutions powered by people, not just platforms. Discover how we accelerate your growth, wherever you are in your journey.

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