Does your small business have a disaster recovery plan? All businesses should have a plan to deal with a crisis. Doing so may reduce dangers and financial losses. Coming back from a disaster can be hard for any business, but without a plan, it might be impossible. You can’t just count on insurance and government agencies to get your business up and running again.
According to the Federal Emergency Management Agency (FEMA), 40% of businesses never reopen after a disaster. Surely no business owner wants to see that happen. That is why businesses need to have a plan. We will go over some of the steps that business owners should start with when making a disaster plan. In addition to our information, we will share links to some resourceful websites with you as well.
Business disasters to prepare for:
- Winter storms
- Terror attack
- Water damage (sprinklers, faulty roofs, etc.)
- Faulty/malfunctioning/stolen equipment and machinery
Where to start
Check your surroundings – To begin, start with preparing for the types of disasters most likely to happen near businesses in your area. In Illinois, this might be tornadoes, snow, and floods. You should also plan for other possible disasters as well, especially if your business is close to a river, nuclear power plant, or potential terror target.
Figure out the cost of interruptions to your business for a day, week, month or longer. If possible, set aside funds to help your business to continue running while you recover from an emergency.
Review your insurance coverage – Don’t assume that your insurance will cover you in the case of a disaster. Talk to your insurance agent and go over your business coverage for emergencies.
Create a business continuity plan – Next, making a continuity plan helps keep your business running as it recovers from an emergency situation. When this plan is necessary it points out important business functions, helps staff continue working, and keeps company documents safe.
Have a clear chain of command – Then, make sure you have an emergency chain of command and that your employees are aware of it. You should always allow your employees time to recover if needed.
Protect valuable information – You also need to have important information stored off-site or electronically in case of disaster. It should have any information on vendors, customers, employees, logistics, and finances that help run your business.
Create a communications plan – Lastly, know how to reach your employees, vendors, contractors, and customers in case of an emergency. It is especially important to have an alert system, such as automated text messaging to employees. So, have contact information for anyone you may need to get in touch with to reopen your business doors.
In short, these are some of the key parts of your preparedness plan. The more items you can prepare for the better the chances your business can survive an emergency.
Disaster Preparedness Resources:
- Emergency preparedness resources for business – FEMA
- Preparedness resources – SCORE
- Disaster resources – SBA
- Assistance for disasters – DisasterAssistance.gov
- Emergency response plan templates – FEMA
- Disaster loan program – SBA
- Business impact analysis worksheet – FEMA
- Why Businesses Need a Disaster Preparedness Plan – DRJ
- Small business disaster planning guide – SCORE
Alarm Detection Systems certainly understands the importance of disaster recovery plan. We can show you how security fits in the overall scheme of business protection. Call us today at 630.844.6322. Our security evaluations are always free.