Despite the devastation caused by Superstorm Sandy and other recent natural disasters, small businesses aren’t getting the message. A new survey finds 70 percent don’t expect to experience a similar disaster and nearly half have no plan to ensure business continuity.
The survey of 200 small businesses, sponsored by FedEx and the American Red Cross, found that Superstorm Sandy inspired only 10 percent of respondents to take new steps to prepare for disasters, according to a press release on MarketWatch.com.
“Creating an emergency preparedness plan is one of the key strategic choices a small business owner can make,” states Tom Heneghan, manager of preparedness for the Red Cross. However, small and medium-sized businesses often settle for minimal disaster planning, wishing they won’t need it. “People understand they should do it, but it often isn’t a priority,” Heneghan explains.
Here are five preparation steps the Red Cross recommends for all small business owners.
- Purchase essential safety equipment: Standard items include fire extinguishers and smoke detectors, first-aid kits and defibrillators. However, businesses may also need industry-specific supplies for disaster safety. Employees must be able to easily access and use these tools.
- Plan emergency communications: Every business needs to communicate with emergency officials, employees, suppliers, vendors and customers in the event of a disaster. Useful tools include an emergency number, a calling tree and text message alerts.
- Prepare evacuation routes and shelter: Make a plan for getting everyone from your facility to a safe location. Be sure to consider the needs of employees with disabilities and medical conditions.
- Back up important business data: Determine which records and documents are critical for your business operations and keep them safe using backup tools. Many individuals delay backing up their data until a disaster occurs. They often have to experience a data loss themselves or witness someone else’s loss first. However, learning through tough experiences isn’t a smart way to run a business, and it can be avoided.
- Develop a continuity of operations plan: In the event of a disaster, a business needs a path to follow to maintain or regain operations. Steps include spelling out the most critical business functions and which staff is responsible for them, and planning how the business will resume operations if the facility is damaged or unusable.
Small business owners need to take the time to plan and implement this 5-step business continuity plan. The time they spend preparing will ensure that they can weather the storms or other disasters that can spell the death of a small business.
We want to hear from you. Which of these five preparation steps have you implemented? Which other steps do you think many businesses overlook? Let us know by posting in the comments section!
