Prepare Your Business

How to Prepare Your Business for Disasters and What to Do After

Disasters can strike anytime, whether it’s a hurricane, fire, flood, or other emergencies. It’s important to have a plan so your business can bounce back. This guide will walk you through how to prepare before, during, and after a disaster. Our goal is to help you protect your business, employees, and customers without all the complicated jargon.

1. Know Your Risks: Assess Your Business

Start by figuring out where your business is vulnerable. Every business has different risks, depending on its location, industry, and how much you rely on things like technology. Ask yourself these important questions:

• Can we work without computers, the internet, or power?
• What happens if our building is damaged or inaccessible?
• Can we pay employees if our income is interrupted?
• Can employees work from home if needed?

If you answer “no” to any of these questions, those are the areas you need to focus on when building your disaster plan. You want to make sure that if something happens, you know what to do and how to keep your business running as smoothly as possible.

2. Create a Simple Disaster Plan for Your Business

Your disaster plan doesn’t need to be fancy, but it should cover the basics so you and your team know what to do when an emergency happens. Here’s what to include:

What Should Be in Your Plan?

• Contact List: Keep a list of employees, key suppliers, and emergency contacts.
• Data Backup: Make sure your important business data (like customer records, financial info, etc.) is backed up regularly in the cloud or offsite.
• Communication Plan: Decide how you’ll notify employees, suppliers, and customers about the situation and recovery steps. Have a backup communication method like text messaging or an app in case phones or emails aren’t working.
• Key Business Operations: List out your most critical operations. For example, if you run a cleaning, that might be cleaning products. Prioritize what needs to be up and running first.
• Backup Locations: Plan for an alternate workspace, like letting employees work from home or a different location, in case your building is inaccessible.

3. Prepare Your Employees

Your employees are your biggest asset in getting your business back on its feet. Help them be ready for emergencies by giving them the tools and training they need.

How to Prepare Your Team:

• Emergency Training: Teach your employees what to do in emergencies like fire drills or evacuation procedures. Make sure they know basic first aid and how to shut down equipment safely.
• Remote Work Readiness: Set up employees so they can work from home if necessary. This includes access to files, communication tools, and their tasks.
• Payroll: Plan for how you’ll pay employees if your business income is affected, such as having an emergency fund or using direct deposit.

4. Protect Your Technology

For many small businesses, technology is essential. Make sure your tech is protected so you can continue working, even during disruptions.

Steps to Protect Your Business Tech:

• Backup Your Data: Regularly back up important files to the cloud so you can access them from anywhere. This is especially important for customer data, financial records, and anything that keeps your business running.
• Have a Backup Power Plan: If you rely heavily on computers, get an uninterruptible power supply (UPS) to protect against power outages and surges.
• Protect Against Cyber Attacks: Disasters often make businesses more vulnerable to cyberattacks. Ensure your antivirus software is up to date, and back up your data to avoid losing anything critical.

5. Make Sure Your Supply Chain Is Ready

If your suppliers are affected by a disaster, it can delay your ability to provide products or services. Here’s how to make sure your supply chain is resilient:

Steps to Prepare Your Supply Chain:

• Have Backup Suppliers: If your main supplier is affected, have a backup option. Build relationships with suppliers outside your local area in case your region is hit hard.
• Stock Up: Keep a little extra inventory on hand of critical supplies to carry you through disruptions. This is especially important for food, materials, or products you can’t easily replace.
• Talk to Your Suppliers: Understand their disaster plans so you know how they will handle things if they’re impacted. This helps you plan for possible delays.

6. What to Do After a Disaster: Post-Check Assessment

After the disaster passes, the recovery process begins. A thorough post-check will help you get your business back up and running. Here’s what to do:

Post-Disaster Recovery Checklist:

• Check for Damage: Inspect your building and equipment for damage. Take photos and document everything for your insurance claim.
• Assess Your Operations: Figure out what part of your business needs attention first. Focus on critical areas like employee safety, customer communication, and key operations.
• File Insurance Claims: Contact your insurance company right away to start the claims process. Have documentation (photos, receipts, etc.) ready to speed things up.
• Keep in Touch: Regularly update your employees, customers, and suppliers on your recovery progress. Open and honest communication will keep people informed and maintain trust.
• Debrief and Improve: After your business is back up and running, hold a meeting with your team to talk about what worked, what didn’t, and how you can improve your disaster plan for next time.

Additional Resources

Here are some useful resources to help your business prepare for disasters:

• American Red Cross – Business Preparedness

By preparing ahead of time and having a clear recovery plan, your business will be more resilient and ready to handle whatever comes your way.