90.3 WCPN: MoneyWatch December 2007

December 2007

Emergency Planning

Disaster can strike a home or business quickly and without warning. This was seen during the 2007 wildfires that hit California. Many of those residents had warning and were able to flee the area unharmed, but a lot of homes and businesses were destroyed. This event is one of many that remind us of the need for emergency planning. Families should have a plan that includes escape routes, communication plans, and a designated meeting place for the family. Homeowners should also make sure that copies of important documents are placed somewhere safe. Emergency planning for businesses, on the other hand, is more complex, more expensive, and more time consuming. It can however mean the difference between survival and failure after a loss.

Small businesses often have more to lose than large companies when a disaster, natural or otherwise, hits. Due to high costs or lack of resources, many smaller companies have less thorough emergency plans in place, while some have no formal process at all. This is the cause for some forty percent of small businesses that do not reopen after a major loss. According to The Small Business Administration, independent enterprises provide most of the jobs in the local economy and therefore a disaster can shake up an entire region.

The chance of a natural disaster happening is obviously dependent upon where you live. However, even if you think you are not in a disaster-prone area, there is still a need for an emergency plan. Owners and employees need to know what to do in the event of any type of disaster, such as a power outage, or even a small flood. The key is to start building your plan now so that you can be adequately prepared for such events. Here are some suggestions from the American Red Cross to get you started:

Keep up-to-date phone lists of your key employees and customers with you and make sure they are available to staff members.
Arrange for programmable call forwarding for all your business lines. If you are unable to get to the office, you can have all lines forwarded elsewhere.
Give a copy of your keys and alarm codes to a trusted family member or employee, just in case you are unable to get to the office quickly after an emergency.
Back up all information on computers frequently throughout the day, and keep a copy off site. Also, use UL-listed surge protectors and battery backup systems to prevent a computer crash if the power goes out.
Keep emergency supplies handy, including flashlights, first aid kits, tools, and a small supply of food and water.

As a small business owner you must also make sure that all employees are aware of the emergency plan. In addition, experts suggest designating certain employees as safety directors. These people should be trained on what do to in the event of a disaster, and would take the lead if an event were to occur. To ensure the highest level of preparedness, make sure to have one of these employees present during every shift.

Emergency planning is an important part of owning a small business, but is too often overlooked. Once considered a luxury, it is now seen as a necessity for surviving a disaster. Owners are realizing the need to protect what they have worked so hard to build because a business that has taken years to develop can be destroyed in a matter of minutes.

Click on the links below for more information and emergency planning assistance.

Local Resources

National Resources

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Research assistance for MoneyWatch is from Cleveland State University Nance College of Business Administration