| When disaster strikes is your small business | | | | your business. |
| ready? Unfortunately the answer is that disaster | | | | - Consider using your website to get messages |
| can strike at any time and it is often an unplanned | | | | out to stakeholders. When you start phoning |
| event. All businesses need a business continuity | | | | staff, suppliers, customers, tell them that you will |
| strategy, unfortunately most businesses do not | | | | be posting updated information on the company |
| even know what a business continuity plan is. | | | | website (if you don't have one, set up at least a |
| I was talking to a small business owner last week | | | | one-page site as a place holder). Ensure that you |
| and asked her if she had a business continuity | | | | have a website host who can do the updates to |
| plan. Her answer was, "no, I don't need one - I'm | | | | your site for you - you will be busy elsewhere. |
| not planning on retiring for another 10 years". | | | | This will save you and your people time in getting |
| What I meant by business continuity plan wasn't a | | | | the message out. |
| succession plan or an exit strategy plan but rather | | | | - Adequate Insurance Coverage: Ensure that you |
| a plan for your business to continue operations in | | | | have business income interruption policy coverage: |
| the face of disaster striking. | | | | you want to be covered in both upstream or |
| Why does your business need a business | | | | downstream loss scenarios. Upstream could be |
| continuity strategy? Because typically disasters | | | | the interruption you would incur if one or a |
| don't announce that they are coming and that | | | | number of your suppliers was affected by the |
| means that your business would likely not be | | | | disaster and could not deliver necessary supplies. |
| ready for disaster. | | | | Downstream could be the loss you incur when a |
| What type of disasters can affect businesses: | | | | key customer is affected by the disaster and |
| fire, flood, earthquake, hurricane, tornado, tsunami, | | | | stops ordering your product or service. Ensure |
| terrorism, and more. Unfortunately the list is long. | | | | that you have appropriate insurance to cover |
| Note: if you are a one-person business you will | | | | other related issues: for example, on-site injuries |
| need a condensed version of the outline below. | | | | to employees or visitors or for loss of your |
| Have a shorter to-do and to-keep list. Keep a | | | | customers' goods or materials. |
| copy of your business continuity plan in a safety | | | | - Inventory List: Ensure that your business |
| deposit box (across town if possible), or with | | | | continuity plan includes an itemized inventory of |
| someone you trust who is reachable in case of | | | | equipment and the supplies you regularly use. |
| emergency but not your next door neighbor | | | | - Business Recovery: Build a business recovery |
| (since the disaster may strike both of you at the | | | | plan. What will you do first, second, third? How will |
| same time). | | | | you get started? Consider contacting your |
| If you run a small business with more than 15 | | | | competitors for help (yes, that hurts but in the |
| employees you may wish to have a plan for each | | | | end if you support your customers through this |
| department (e.g. administration/finance; sales | | | | they will remember). If you run a manufacturing |
| marketing; operations/human resources, etc.); and | | | | plant, consider the equipment you would need and |
| have each department head responsible for their | | | | how quickly you could replace the most important |
| department's plan. However the plan needs to be | | | | pieces (e.g. consider asking your equipment |
| integrated into a master document that you, as | | | | supplier if they have any demonstration units they |
| the small business owner, need to manage and | | | | could lend you until your new equipment is |
| control. | | | | shipped). If you're in the inventory business, make |
| Your plan must consider how you will manage the | | | | sure you keep inventory-turn lists and supplier |
| impact of a disaster on your business. Will your | | | | information in your plan documents. |
| employees be able to get to your place of | | | | - If you own the building you might want to keep |
| business? Will your business be operational? How | | | | a list of pre-approved professional engineers |
| will you contact your customers and suppliers; or | | | | (these will be in demand if the disaster has hit a |
| how will they contact you? Do you have your | | | | large area) and consider an out-of-town engineer. |
| business records on a management information | | | | If the building is still standing after the disaster you |
| system that is backed up daily and stored offsite | | | | still may need or want a structural review before |
| (way offsite - some business owners store this | | | | restarting operations. |
| data in cities across the country: downloaded | | | | Depending on the extent of the damage and the |
| backups are transferred by script to professional | | | | disaster, you may not want to rebuild your |
| backup services). | | | | business. Do not make that decision too quickly. |
| What your business continuity plan needs to | | | | There will always be a strong emotional response |
| include: | | | | to disaster. Your emotions may cloud your ability |
| - A Communication Plan: How will you | | | | to make a good business decision. When you |
| communicate and who will you communicate to? | | | | write your business continuity plan now - also |
| Your contact lists need to include all key | | | | include why you run your business and why you |
| stakeholders: employees, customers, suppliers, | | | | got into the business. After a disaster strikes, |
| your insurance agent, your lawyer, your | | | | carefully review the reasons for rebuilding or not |
| accountant, your software provider, your banker, | | | | rebuilding your business. If you have a strong |
| your property manager or landlord if the building is | | | | business continuity strategy built into your plan, it |
| not owned, shareholders, and others important to | | | | will make the decision to go forward much easier. |