Is Your Business Prepared for a Disaster?:

If your business is located in an area that is prone to natural disasters, or if you want to make sure that you are ready for whatever may come, it is a good idea to take measures to prepare your business for a disaster. There are specific steps that can be taken to reduce the severity and impact a disaster can have on your business.

1. Purchase a property insurance policy and loss of income policy. These two policies can provide you with coverage not only to repair your business should disaster strike, but replace your income while your business is being repaired. Every business owner needs to have at least a property insurance policy, and in most cases, a Business Owner's Package Policy or BOP, can provide a less expensive alternative for quality coverage.

2. Back up all of your files. It is essential to perform routine backups of all of your business files. This will include customer information, invoices, receipts, communications and any other necessary information. It is a good idea to place your backups in a safe location, such as a safe deposit box that is located away from your business should your business be completely destroyed. If you have never made backups of your files, now is definitely the time to start. A scanner can be very useful in creating digital copies of documents and necessary receipts.

3. Set up an employee plan of action. It is a good idea to create a list of procedures for you and your employees should disaster strike. You will need to have a list of all of your employees and their contact information in a location away from your business. If you have several employees, you can select one employee to start a phone tree that will make notifications much easier. A phone tree works by having the first person call one individual, who in turn calls two others, etc.

Your plan of action should include contact protocols, a suitable temporary location for your business operation, directions to the temporary location and equipment back-ups if necessary.

4. Instruct another person on your duties. If you have a personal disaster and are unable to oversee your business, you will need to have someone who is knowledgeable on how your business runs to take over for you. If you are a sole proprietor without any employees, the need for preparation is even more important. You cannot afford to let your business go under if you are unable to administer it. Try training a friend or leaving a list of specific instructions that can be carried out in your absence. Employers with more than one employee can instruct a manager or even an assistant on what should be done in their absence.

5. Frequently update your plan. Don't let your disaster plan gather mothballs! You will need to periodically confirm employee contact information, seek out a new temporary location or tweak certain procedures as times change. You will also need to continue making back-ups of your information to ensure as little data loss as possible.

With the proper preparation, a disaster doesn't need to spell ruin for your company.

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