How Long Can Your Business Afford to Be Closed?
By Zelda Fraden

Can you even imagine what would happen to you and your employees if your company was suddenly and unexpectedly forced to close its doors for a few weeks or months? Do you think a disaster could never happen to your company? What would you do if your company was suddenly devastated by an unexpected disaster? All these are questions you should be asking yourself.

The reality is that only 7% of Americans have actually prepared for a disaster. Nobody ever expects a disaster to happen to them…that is something that happens to other people and other businesses. Stop and think what kind of disasters could cripple your company and what would be the consequences.

There are two categories for disasters. Disastrous events are either man-made disasters like terrorism or natural disasters such as: storms and fire. Some of these events will happen with a little warning and others can not be predicted. When a natural disaster such as a tornado occurs, approximately 60% of businesses affected will never reopen. To increase the odds you are not one of the 60% there are things your company can do to get those doors opened faster. Your lost revenue will decrease the faster you recover. A company needs three basic elements in place in order to increase their odds for recovery from a disaster.

Every company should stay informed. Listen to the radio, television and read articles that will help in the event you are put in an emergency situation. Read articles that will help you prepare for the types of disasters that could affect your business. What would happen if your main supplier was crippled by a disaster? Where would you be able to obtain the goods you need to sell? You need to have a back up supplier while your main vendor is rebuilding. Listening to radio and television you will be knowledgeable if bad weather is approaching and you will have time to prepare. However, not all storms can be predicted. Staying informed allows you the time necessary to prepare your company for predicted disasters such as a hurricane.

Does your company have an emergency kit? Does everyone know where the kit is located? Having a first aid kit in the building is great but everyone must know where to find the kit should the need arise. The Red Cross has created a kit that is available in many stores and may also be purchased on-line. What do you need in the kit besides bandages? Different disasters would require different products. There are a few basic essentials necessary for all emergency kits. Ask yourself, what do I need to stay dry, warm, hydrated, treat minor injuries, signal for help? Does someone in your company know how to administer CPR?

Every company must have a written disaster recovery plan. The plan should have a minimum of these components: communication process, security/safety of building and employees and data storage recovery.

The communication process of your written plan should cover who contacts whom. Communication should include contacting employees, suppliers and customers. Security needs to include both the security and safety of the building and the employees. You will need to be certain the building is safe to enter and the staff informed of when it is safe to re-enter. Communication should also include the use of phones. Sometimes there are no phone lines. Perhaps the mobile phone towers are down too, what are your options now. Where is the backup of your computer information stored? Storing the backup in your building would be a bad idea if the building is destroyed.

There are many things to consider when putting together a business disaster plan. The safety of all staff is of course the number one concern. Have a written plan that is reviewed periodically and distributed to each employee should be standard practice in every business. Employees move around and someone in charge today is not necessarily with the company tomorrow. Every business that has a well thought out written disaster recovery plan increases their odds that they too will beat the statistics and remain open during their restoration period.

Copyright© Zelda Fraden Permission is granted to reprint this article in your newsletter, magazine or publication with the following byline and clickable link: Zelda Fraden is an expert speaker, author and consultant on Family, Entrepreneurs and Women Owned Business issues. To find out more about her programs and services, visit www.ZeldaFraden.com or call 904-260-9331.