Every organization requires a Business Continuity Plan (BCP) or Disaster Recovery Plan (DRP) which falls within cost constraints while achieving the target recovery requirements in terms of Recovery Time Objective (RTO) and Recovery Point Objective (RPO). The organizations must identify the likely events that can cause disasters and evaluate their impact. They need to set the objectives clearly, evaluate feasible disaster recovery plans to choose the DRP that would be optimal. The paper examines tradeoffs involved and presents guidelines for choosing among the disaster recovery options. The optimal disaster recovery planning should take into consideration the key parameters including the initial cost, the cost of data transfers, and the cost of data storage.