The earthquake and tsunami in Japan are having worldwide economic consequences. Clearly, the Japanese government and some Japanese corporations have revealed inadequate disaster preparedness and risk management programs. This is having impacts on many other countries and businesses as products produced in Japan are becoming hard to procure and the recovery is predicted to take a long time.
While this may not seem relevant to a small business owner in Wisconsin, parallels can be drawn. Every business owner needs to make sure they have an adequate source for all products, materials and supplies. Relying on only one source is dangerous for any size business. Part of any well run business is the regular review of potential suppliers/vendors for both price and quality. Having a backup plan should disaster hit one of your suppliers is vital to keep your own business running smoothly. This can also be true for clients or customers. If your business is too reliant on one customer and that business suffers a setback, can your business survive?