Would Your Small Business Survive a Disaster?

The Small Business Administration (SBA) reported in 2006 that 25% of all businesses that close because of a disaster never reopen, and according to the American Red Cross, 40% of small businesses never reopen following a disaster. By investing a relatively small amount of time and resources now, you could make sure your business is prepared to survive the unexpected.

Many, if not most disasters strike quickly, without warning. Disasters are not just catastrophic events that we hear about on the evening news. Something as seemingly mundane as a broken water pipe can turn into a disaster if it occurs in the middle of the night and is not detected for eight hours or more. Would your business survive if you have to close the doors for an unspecified amount of time? Is your inventory and equipment protected and insured adequately? How would a disaster affect your employees and customers?
It is not the intention of this article to be your complete disaster plan resource. My hope is that after reading this you will be motivated enough to get started on your own plan, and will have enough resources to begin the research you need to do for your specific business. I also hope to illustrate that any plan is better than sticking you head in the sand to avoid dealing with unpleasant issues. You owe this to yourself, your family, your employees and of course your customers. Katrina was a devastating example of what happens with little or no planning.
The planning needed to prepare your business for disaster is not as difficult or overwhelming as you might think. There are many excellent resources and aids available, at little or no cost, to help you put a plan together that will be appropriate for your particular business’ needs. The American Red Cross has very comprehensive information and resource links on their web site www.redcross.org. The FEMA website, www.fema.gov, also has a great deal of information. The most inclusive, tool that I found in this research is available through the Institute for Business and Home Safety, www.ibhs.org. Their tool kit is called “Open for Business” and can be downloaded in a PDF format. This packet has everything you need to put together a comprehensive disaster plan, and it takes you through the process step by step. The key is to get started!