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The Small Business Administration (SBA) reported in 2006 that 25% of all
businesses that close because of a disaster never reopen, and according to the
American Red Cross, 40% of small businesses never reopen following a disaster.
By investing a relatively small amount of time and resources now, you could make
sure your business is prepared to survive the unexpected.
Many, if not most disasters strike quickly, without warning. Disasters are not
just catastrophic events that we hear about on the evening news. Something as
seemingly mundane as a broken water pipe can turn into a disaster if it occurs
in the middle of the night and is not detected for eight hours or more. Would
your business survive if you have to close the doors for an unspecified amount
of time? Is your inventory and equipment protected and insured adequately? How
would a disaster affect your employees and customers?
It is not the intention of this article to be your complete disaster plan
resource. My hope is that after reading this you will be motivated enough to get
started on your own plan, and will have enough resources to begin the research
you need to do for your specific business. I also hope to illustrate that any
plan is better than sticking you head in the sand to avoid dealing with
unpleasant issues. You owe this to yourself, your family, your employees and of
course your customers. Katrina was a devastating example of what happens with
little or no planning.
The planning needed to prepare your business for disaster is not as difficult or
overwhelming as you might think. There are many excellent resources and aids
available, at little or no cost, to help you put a plan together that will be
appropriate for your particular business’ needs. The American Red Cross has very
comprehensive information and resource links on their web site
www.redcross.org . The FEMA website,
www.fema.gov , also has a great deal of
information. The most inclusive, tool that I found in this research is available
through the Institute for Business and Home Safety,
www.ibhs.org . Their tool kit is called “Open
for Business” and can be downloaded in a PDF format. This packet has everything
you need to put together a comprehensive disaster plan, and it takes you through
the process step by step. The key is to get started!
Identify what matters the most
The first step in creating a plan for your business is to identify what matters
most. For each business this is a unique list. If you own a service or
consulting business you may not need to be concerned about inventory, but your
paper and electronic records could hold the key to your on-going success. How
will you protect those assets? Think about business continuity and how you could
make that happen under the most difficult circumstances. How will you continue
to service your customers? A disaster may impact your customers’ ability to
reach your goods and/or services. What if your employees are unable to return to
work due to their own disaster related difficulties?
Your physical resources include the building where you do business, inventory,
equipment and vehicles. Make sure these assets are protected as part of your
plan.
Losses due to disaster can occur, even if your business is unharmed. Upstream
losses are due to your suppliers being affected by the disaster and cannot
deliver goods or services to your business. Downstream losses occur when your
key customers are affected by disaster, and are not using your goods or services
for an extended period of time.
Aside from the important issue of being able to continue to do business, as the
business owner you are responsible for the safety of your employees and
customers. Consider having some, or all of your employees trained in First Aid
and CPR.
Make a plan
Once you have an idea of your critical needs, then you can begin to develop a
plan that will take into account human resources, physical resources and
business continuity. Involve your employees in the planning process. It’s your
business, but it is their livelihood and safety that is at stake as well. Having
your staff involved with this process will also ensure a smoother
implementation, should a disaster strike. Develop a crisis team with a
representative from each department.
Set up a time frame to complete each stage of your plan, and a target date to
have it completed. Once you have some kind of plan in place it is important to
review and update it, at least once a year.
Resources
Check with your city officials for specific programs in your community. Many
cities offer preparation guides and other resources to help their citizens and
businesses be prepared.
Your insurance company may also have resources to help you assess your business
needs.
Keep yourself informed. The Internet is an excellent source for many resources,
such as: http://www.disaster-resource.com a comprehensive source for crisis /
emergency management and business continuity information.
Avoiding or putting off this task will most definitely NOT make your life
easier, in the long term. You carry with you every day, the knowledge that you
really need to get this done, and that is stressful. Relieve that stress and
create a sense of confidence within your organization, by developing a
contingency plan and keeping your employees informed.
Sandra J. Carroll is a self employed consultant with over 30 years of business
experience. Her company, Creative Changes provides practical solutions to the
organizing, space planning and storage needs of homeowners and small businesses.
Creative Changes also offers Home Staging and moving services, specializing in
low cost solutions. Sandra lives and works in the Palm Springs area of Southern
California. For more information about Sandra and her professional organizing
business, or to request your free copy of "70 Practical Tips to Organize Your
Home & Office" please visit:
http://www.creative-changes.com
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