Q. With tornado season upon us, and news of so many weather-related disasters, I know I should have better plans for my business in case of a disaster. Where do I start?
A.Disasters come in many shapes—from weather events like tornados, storms and floods to man-made events like fires, chemical spills or burglaries. In any event, advance warning is rare, so preparing before the event is crucial.
By far the most important step you can take is to write a business continuity plan. It should be comprehensive (that is, address all likely scenarios completely) but also simple and flexible.
Depending on the size of your business, it may be wise to select a key person to lead the process of developing the plan. When completed, communicate your plan to employees.
The business continuity plan should identify all your business functions (for example, purchasing, inventory management, sales, marketing, payroll) and select a key employee for each function.
Include a disaster communication plan. Who will be the public spokesperson?
Assign tasks in the case of an immediate evacuation. Compile contact information for all employees and identify how they will be contacted in case of a disaster.
Create two document folders with backup copies for all critical documents—update it regularly. Store one folder offsite.
The document folder should contain the continuity plan; computer backup disks of all data; contact information for employees, vendors and professional services; photos of your business; and all other key documents (insurance policies, lease, loan documents).
Immediately after a disaster take the following key steps:
• Contact your insurance agent or company.
• Complete temporary repairs to minimize hazards and protect undamaged
property. (Keep receipts for any items purchased to protect, secure,
repair or clean up your property.)
• Document damage carefully, including photos, before throwing
anything away.
• Choose contractors carefully and use only those who are licensed,
insured and bonded.
There are many considerations in disaster prevention. Your insurance company will likely have a loss prevention specialist who would be very willing to help you prepare.
Do you have a retailing question? Ask the Michigan Retailers Association
by mail: 603 South Washington Avenue, Lansing, MI 48933;
by fax: 517.372.1303;
by e-mail: mra@retailers.com.
