Posted on: Wednesday, August 25, 2004
Small businesses need disaster plan
By Rhonda abrams
Gannett News Service
Fifteen billion dollars.
That's the estimate of how much damage Hurricane Charley has wracked upon Florida. Much of that has been done to small businesses. Natural disasters can hit any small business anywhere. Floods. Fires. Tornadoes. Earthquakes. And now, there's the horrifying potential of terrorism.
Every business — no matter how small — needs an emergency preparedness plan. This doesn't have to be complicated, and you don't have to practice fire drills. A few simple steps can save you a lot of money and heartache:
• Insurance: As awful as a disaster can be, the effects will be less devastating if insurance covers the financial losses. Disaster insurance can be expensive, but like liability or fire insurance, it should be evaluated just as any other business expense. Consider business interruption insurance which covers you even if your business doesn't suffer physical damage, but you lose income because of such effects as closed roads or loss of power. If yours is a home-based business, examine your policies and talk to your insurance agent. Most homeowner policies don't cover things such as computers, tools, samples. So adjust policies accordingly.
• Data: Our businesses rely on our records, so it's critically important to regularly back up your computer data and store copies of both digital and paper data off-site. Online data back-up companies (such as backup.com or EVault) offer relatively inexpensive options for storing data over the Internet. At the very least, in small companies, the boss can take a backup copy of records home once a week; just make sure it's at least a mile from the office or store. Get a fireproof safe for vital documents; make copies and store those off-site or with your attorney. • Power: For vital business equipment, purchase auxiliary generators. For data, you can purchase inexpensive backup power supplies to give you about a half hour's extra power for computers, giving you time to back up records. • Safety: In a serious disaster, the most important thing is safety. Keep flashlights (with fresh batteries) on hand to leave in the dark. Develop evacuation plans; know how to exit your building in the dark or in a fire. • Employee backup: Emergencies also come in the form of personal disasters, such as illnesses and accidents, so make backup plans in case you or key employees become unavailable. Make certain that someone knows where your records are and has the power to deposit checks, pay bills, and can contact customers. This could be a key employee, an attorney, even a family member. Just make sure you trust them. • Backup supply sources: Remember, a disaster elsewhere can prove to be a disaster for you if your business depends on distant key suppliers. Develop a list of alternatives in case your regular supplier becomes unavailable. Finally, keep in mind that disasters have psychological as well as physical and financial effects. Expect employees to be distracted and to spend time around the water cooler recounting just where they were when the dam broke, the tornado struck, or the earth shook.
• Emergency plan: Before disaster strikes, determine the critical components of your business. For a one-month period, keep notes on what you do and what you need to do it (employees, data, power, phones, Internet access). What would happen if an emergency struck? How would you get phone messages? Can you get your e-mail from a remote location? How would you contact your employees? Where could you work? Make contingency plans for every aspect.
Emergency preparedness tips
• Insurance: Make sure you have adequate insurance to cover potential financial losses.
• Data: Businesses rely on records, so it's critically important to regularly back up your computer data and store copies of both digital and paper data off-site.
• Power: For vital business equipment, purchase auxiliary generators.
• Employee backup: Emergencies also come in the form of personal disasters, such as illnesses and accidents, so make backup plans in case you or key employees become unavailable.
