Creating a Solid Disaster Readiness Plan
August 29th is the first anniversary of Hurricane Katrina, yet many business owners have still not prepared an effective disaster plan. The process of rebuilding homes, lives and businesses in New Orleans has left many exhausted- leaving disaster planning on the back burner. A few hours of work, however, can make all the difference. Don’t wait until another disaster strikes to develop your plan. Whether your disaster scenario includes hurricanes, floods, fire, terrorists or earthquakes, here are some simple steps you can take to ensure a quick recovery for your business in time of need.
Insurance
The obvious first step in disaster preparedness is insurance protection. Is your company’s insurance policy sufficient for its growing needs? Sure, you might have property and liability protection, but what about extra expense and business interruption coverage? Julie Cook at Business Start-Ups Magazine reported that “nearly half of US business owners don’t purchase business-interruption coverage.”* Take a couple of hours this afternoon to research insurance options and talk with your agent. Spending the time today could save thousands of dollars tomorrow.
Reciprocity Agreements
Plan ahead by talking with other local or out-of-state businesses about reciprocity agreements in disaster scenarios. This is an easy and cheap way to secure a secondary location in case of fire or other disaster. For example, Christy’s graphic design business in Milwaukee has a reciprocity agreement with a local advertising firm with whom she has developed a strong relationship. If either party experiences a sudden disaster, like a fire or power outage, they have agreed to share office space temporarily. Many out-of-state law firms graciously opened their offices to New Orleans firms during the evacuation from Hurricane Katrina. The strong relationships that they developed prior to the storm proved indispensable in a disaster scenario.
Data Backup
Although large companies often create enormous amounts of data and files, small businesses often stand to loose more in the event of a system crash. If all of your information is saved on one or two computers in one location, you absolutely must find offsite data backup. Today, it is easier than ever to buy space online for data backup. Check out carbonite.com or simply Google ‘online data storage’ to find companies that provide this inexpensive and easy-to-use service.
Phone System Backup
With new technology in Voice over IP (VoIP), companies like Xpance Broadband now offer disaster-ready, business-grade phone service. In a disaster scenario, simply take the phone with you and plug into any high-speed internet connection for uninterrupted service. Your clients will never know the difference- same phone number, same service. Even if you are unable to bring your phone with you, Xpance will overnight a new phone to you- bringing you up to full speed operability within 24 hours. Find out more at www.xpance.net.
I urge you to get started today. Schedule a firm appointment with yourself and/or staff members each week for 2-3 hours of disaster preparation. Your written plan should be robust and thorough. Think about all possible scenarios and out-of-the-box creative solutions.
Finally, once the disaster plan is complete, it is smart to require all employees and new hires to read the plan. More importantly, be clear with your staff about who holds responsibility for implementing key parts of the plan in a disaster scenario. Disasters, by definition, are chaotic and uncertain. Communicating a clear plan to your staff will help ease that uncertainty and probably help you to sleep better at night.
*Cook, Julie. “Expect the Unexpected: Create a Monster Plan to Disaster-Proof your Business.” Business Start-Ups Magazine. January 1997.
