Preparing Your Business for a Disaster
How will your business be negatively impacted following a natural disaster? While most of us are probably confident our businesses would prevail, the Federal Emergency Management Agency reports that nearly 40 percent of small businesses will not reopen after a major disaster. In light of recent events and the hurricane, it's a good time to review the steps that can be taken to help safeguard your investment.
- Where would you do business if your building was damaged or destroyed?
- How would you continue to provide your products and/or services to your customers?
- How would you access your client and vendor contact data and electronic files?
These are just some of the many challenges business owners must ask of themselves and their employees. A thorough disaster plan can help you outline the critical information and strategies you will utilize in the event of a disaster.
Don't anticipate just one type of disaster. Whatever your location, most owners are well aware of the damage the most likely event can cause, but when crafting your disaster plan, don't forget other potential disasters. Floods, gas leaks, power outages and other unforeseen accidents can just as easily damage your building and/or merchandise.
Review your insurance status and consider special riders to protect valuable property and equipment. Discuss your business continuity plan with your insurance agent and inquire about the special precautions you may need to take to safeguard your business.
Protect your equipment and data. Back up computer data throughout the day and store a back-up tape in a secure, off site location. Use surge protectors and battery backup systems to protect sensitive equipment and to prevent a systems crash in the event of a power outage.
Create phone lists that include your key employees and customers' contact information and provide copies to your managers. Make at least two copies of important documents including lease papers, photographs of property and lists of inventory and store them in separate, secure locations.
Stock supplies, materials and equipment. Store emergency supplies on site, including a weather radio, flashlights with extra batteries, a first aid kit, tools, food and water for employees and customers to utilize during a disaster. remeber, you may be forced to remain on the premises for an extended period of time. Consider obtaining a generator, which may be able to sustain your business during a power outage.
Review your disaster plans with your employees and make sure they understand their roles and responsibilities before, during and after the disaster. Everyone in your facility should know how to prepare for a disaster, what to do if one occurs and how to reach their immediate supervisor. Designate one employee from each shift to serve as a safety coordinator.
Communication with your staff and customers is key. In the event of a disaster, send e-mail announcements and record phone messages (when possible) about the status of your business. Provide this emergency "hotline" number to your team and customers and arrange for programmable call forwarding for your main business line(s) so you can continue to do business from a remote location.
There are numerous free online resources for your business. The American Red Cross produces the Emergency Management Guide for Business and Industry, and the Small Business Administration have developed the Open for Business disaster planning booklet, which is available at www.ibhs.org.
