For many business owners, making their companies less vulnerable in case of a disaster is something they mean to get around to at some point. In the midst of client meetings and employee crises, disaster preparedness isn’t at the top of many agendas.
But now, well before the Pacific Northwest’s flood season — business owners should make disaster planning a priority to protect their companies and employees.
There are three main parts to disaster planning: making your company’s physical plant more secure; protecting your data; and creating a plan that will allow your business to resume operations as quickly as possible.
The steps you take to protect your place of business from a natural disaster depend on what hazards you’re likely to encounter. Here, earthquake and flood damage are the biggest concerns.
For many companies, it’s equally important to be sure that data — customer records, order histories, payroll, bank information, contact lists and more — are backed up and easily retrievable.
Backed up means duplicated and located in a safe place, perhaps on a server at a company that specializes in helping businesses preserve their data. It could also be copied onto CD-ROMS, but the discs need to be stored off-site, not in a desk in your office.
Diana McClure, director of public safety strategy for the Institute for Business &Home Safety, emphasized the third part of disaster preparedness: a recovery plan. That means knowing in advance how you’ll proceed if disaster strikes — not unlike a couple who plan in advance the trip to the hospital for the arrival of their baby.
A plan means knowing where you would go in case of a disaster, how you would get in touch with employees, and where you might set up a temporary workspace. It can also mean having alternatives in case your vendors are shut down. In fact, you might not be directly affected by the disaster, but if your suppliers are unavailable, your business stands to suffer.
"If you’ve thought some of that through, psychologically that makes you a lot better prepared," McClure said.
But McClure noted there’s an element of disaster planning often overlooked by many companies — arranging in advance for help and support from other businesses and professional groups.
She recalled the case of a florist who was shut down by a disaster but who had an agreement with another florist under which they would use each other’s premises in an emergency. The business kept operating while the physical damage was repaired.
The Internet has checklists and guides to help small businesses put together a plan, and to help them think about what steps need to be taken to protect a physical plant and electronic data. Among them are the U.S. Chamber of Commerce’s checklist at www.uschamber.com/resources/preparedness/resources/checklist.htm and "Open for Business," a guide created by the SBA and the Institute for Business &Home Safety, at www.ibhs.org/docs/openforbusiness.pdf.
The American Red Cross also has a disaster preparation guide on its site, www.redcross.org. You can find it by searching for "business and industry guide." The Federal Emergency Management Administration has information at www.fema.gov/library/biz1.shtm.
Pre-disaster mitigation and planning is an expense that needs to be weighed against the risk of loss in a disaster. Small business owners pressed for cash might be reluctant to spend much on preparing for a disaster that might never happen. But McClure noted that it’s possible to take many steps that cost little or nothing.
"Open for Business" notes that elevating merchandise and valuable equipment so they are safer from floodwaters costs nothing, and emergency supplies or plywood shutters to protect windows from hurricanes are relatively cheap. It has a checklist of planning steps divided into "no costs," "under $500" and "more than $500."
McClure said disaster planning needs to be a factor in many everyday business decisions, not just when tornadoes or hurricanes become of a threat.
For example, if you’re moving to a new business location, you need to consider, "Is your building up to date on safety codes? And what about the buildings next to you?" she said.
You also should be sure your insurance coverage is adequate. McClure noted that having insurance means you will have the financial ability to get your business up and running again. Without that money, it will be that much harder for you to replace equipment and other assets destroyed in a disaster.
Small Business is a weekly column on the topic by the Associated Press.
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