How to: Be Prepared

Here are three components to a disaster plan: developing a contingency plan, backing up your data and reviewing insurance policies.

A contingency plan helps you avoid shutting down your business if disaster strikes. Here are the keys to developing a contingency plan:

• Assess potential hazards.
• Analyze the potential impact of disasters.
• Stock up on emergency supplies.
• Install a generator for emergency power.
• Check the building’s structure to ensure it is stable and fortified.
• List backup vendors or suppliers in case primary suppliers shut down.
• Consider alternative worksites to continue operation.
• Make a list of 24-hour emergency numbers for employees.
• Practice drills for mock-disaster scenarios.

Backing-up data

• Make backup copies of all critical records, such as accounting and employee data, customer lists, inventory, etc.
• Keep information in a separate location at least 50 miles away, and ensure information with an online data-backup provider.

Reviewing insurance policies

• Take out a property insurance policy.
• Consider business interruption insurance to cover cost of lost income if business shuts down temporarily.

Source: The Wall Street Journal Complete Small Business Guidebook, Colleen DeBaise