Small business disaster preparation: Try to think of everything that might go wrong

Small businesses need a disaster plan _ and plan B

NEW YORK — Small business owners in the Upper Midwest have just gone through a disaster preparation drill as the Red River rose and threatened to repeat last year’s catastrophic flooding. The region dodged a bullet this time, but more floods may well come, and other parts of the country could see tornadoes and hurricanes.

Disaster preparation is one of those tasks that many small business owners say they’ll get around to, soon. But it often gets pushed down the priority list, especially when a company is focused on bringing in new business or improving cash flow.

Many owners also believe disaster won’t strike them. They might believe their companies are safe because they’re far enough away from a river.

John Stern’s clothing store in Fargo, N.D., is on high ground, and it escaped the 2009 floods. But he’s learned that a disaster doesn’t have to be a big event like an overflowing river. About 10 years ago, the problem was also a flood, when the rain-soaked ground sent water lapping near the entrance to his store. He had to close Straus Clothing for three days.

Now, “we’re prepared if it happens,” Stern said of a disaster. He has his company’s data backed up and “we take the discs home every night.” The store has back-up batteries in case the power fails. And it has sandbags.

What follows is a guide to disaster preparation for small businesses:

FIGURE OUT WHAT YOUR NEEDS ARE

How complex your disaster plan is will depend on the time and resources you have to dedicate to it. People whose work is to help companies prepare for disasters often advise owners that they need to first plan for their most important assets: their employees and their data, including e-mail, financial books and customer lists.

After that, each owner must decide what they need to do to get the business up and running after a disaster. That might seem overwhelming, so it’s a good idea to get help. If you have employees, ask them to brainstorm with you. They know how the business operates and can give you advice. Or ask a friend who owns a similar business.

Stern said he’s learned to “think of everything that can go wrong and prepare for it.”

Owners who need help figuring out what they need to do for disaster planning can also get help online. The Institute for Business & Home Safety’s site, www.disastersafety.org, and the federal government’s guide at www.ready.gov/business go into some detail. The Small Business Administration also has information at www.sba.gov/beawareandprepare/business.html.

PROTECTING YOUR DATA

With the widespread availability of data backup, no company should have to lose its information. And many companies routinely back up their information to guard against the most likely high-tech disaster: a crashed hard drive.

At the least, companies should back up their data on discs, as Stern’s store does, or an external hard drive. It’s wise to have multiple copies of the data, to be really safe. Most important is to take whatever storage medium you use off the premises each night.

Similarly, companies that use laptops can easily protect their data — employees just take them home.

Many companies now back up data remotely, using Web-based services. Dean Rangone, owner of allRisk, a Somerdale, N.J., firm that does post-disaster cleanup, noted that with this method, “you’re going to be able to access your information from anywhere in the world.”

If you choose remote backup, don’t use a service that’s just across town. That company could also be shut down by the same disaster. You might want to think in terms of thousands of miles away. Remember the Northeast blackout of 2003? Eight states lost power.

STAYING IN TOUCH WITH EMPLOYEES AND CUSTOMERS

Employers need to be sure that staffers and their families are safe. And that they can get in touch with them.

First, there should be a list of phone numbers, home addresses and e-mail addresses for everyone in the company that all managers and staffers have access to. And, since that information tends to change frequently, that list needs to be current at all times.

There is advance warning for some disasters, including hurricanes. A whole new set of contact information will be needed for staffers who are evacuating. If they’re not sure where they’ll be staying, then they should supply names, phone numbers and e-mail addresses of friends or relatives.

You also need to be sure your customers can reach you. Rangone suggests having your business phone lines routed to cell phones. That way, your customers won’t be left wondering what happened.

COMING UP WITH A PLAN — AND THEN PLANS B AND C

As businesses learned in the aftermath of Hurricane Katrina, even the best of disaster plans can go awry. So, owners need to think about the “what ifs.” What if there is a widespread power outage? What if cell phone service goes down? What if the disruption to your business is going to last weeks or months?

So you can come up with a plan for getting your company running again, but be ready to change it, depending on the type of disaster, how serious it is, and where your employees are. After Katrina, many businesses whose premises were intact weren’t able to get their staffers back for some time, because so many homes were damaged or destroyed. It’s likely that few expected to be shut down for a long time.

Once you know how bad the situation is and where your staffers are, you can start recovering.

Leslie Luke, group program manager with the San Diego County Office of Emergency Services, noted that “it doesn’t have to be a catastrophic event to have to evacuate out of their buildings.” A fire or building collapse could shut down your business too.

TURNING YOUR COMPANY INTO A SHELTER

Sometimes the disaster doesn’t affect your physical premises, but it forces your employees to stay at work. Yvette Urrea Moe, a public information specialist with San Diego County’s Office of Emergency Services, said that an event like an earthquake could make roads impassable. So companies might want to consider keeping food, beverages, blankets and other staples on hand.