Natural disasters

Preparation is key to avoidance or recovery

Every nursery and greenhouse owner faces some degree of risk of a crippling disaster. The key to minimizing that risk is a well thought out plan of action in the event that disaster strikes.The key to minimizing disaster risk is a well thought out plan of action in the event that disaster strikes. Here are nine steps you can take to help you to avoid or recover from a catastrophic loss.


1. Create a disaster preparation and recovery plan
“Every business needs to have a disaster preparation and recovery plan, even if it’s located in a relatively low risk area for natural disasters,” said Gene Fairbrother, an expert in disaster planning.

Your plan shouldn’t be a cumbersome project.

“To be effective, it should be a model of clarity, fully understood by every employee. Some basics of a disaster plan seldom change,” he said. “For example, your evacuation destination, or the first things you’d grab on your way out if you had to evacuate in a hurry. However, other things do change, like contact information on customers and suppliers, and places to find replacement equipment. Review your disaster plan at least once a year to make sure it still works for your business.”


2. Share your plan
“It often takes another set of eyes and ears to point out the cracks in a plan, or to spot missing component,” said Fairbrother. “That’s why you should share it with someone else, especially your employees. They may find a flaw or an important step that you missed.”


3. Keep off-site backup of computer records
According to one estimate, 90 percent of all business records are now electronic. That makes recovery of vital business information easier, provided a careful backup system is in place. Most nursery owners have learned the importance of backing up the information on their computers, but not everyone does a complete job.

Stefan Dietrich, Ph.D., co-author of the book, Contingency Planning and Disaster Recovery: a Small Business Guide, stresses the importance of maintaining an up-to-date backup copy of critical data at an offsite location.

“Unattended automated backups are better than using CDs or flash drives,” he said. “Typically, most people don’t follow through with creating backups. For that reason, automated online backups to a remote location via the Internet are much better.”

Find more information on internet backups at www.atbackup.com.


4. Safeguard your most precious business asset
Your lists of customers, insurance companies and vendors are the foundation for the continued health of your business.

“If you are out of business for a few days – or longer – you need to let all of your important contacts know what is happening,” Fairbrother said. “This means having an easily accessible list of all contact information. As with other business records, it’s best if copies of this are stored offsite.”


5. Review insurance policies
“Carefully review your insurance policy to make certain it is appropriate for your needs,” said Donna Childs, CEO of Childs Capital LLC and co-author of Contingency Planning and Disaster Recovery: a Small Business Guide. According to Childs, the failure to include business interruption insurance is the most common error in disaster planning for small businesses.


6. Provide backup power
“Consider the use of a backup power generator,” said management consultant Isidore Kharasch. “Having a backup battery for your computer should be part of your plan. Even if it lasts for only two or three hours, it will give you time to close out servers and shut down the system with your critical records intact.

Post disaster
In the event that your business is hit by a natural disaster, your plan should include guidance on how to get it up and running again as quickly as possible. These steps should be part of your plan.


7. Provide physical security
In the aftermath of any natural disaster, security of business assets is almost certain to have been compromised. As soon as possible, put any parts of your plan dealing with physical security of your inventory and other assets into effect.


8. Keep customers updated
If you have protected the information on your customers as recommended above, you can send emails with updates, or you can put the information on your website.

“Remember, too, that your suppliers have businesses of their own to run; they and your customers will appreciate knowing how and when you expect to be back in business,” Fairbrother said. “In most cases they will work with you in your time of need. However, don’t lose sight of the fact that they have needs of their own and must continue to take care of those needs. Maintaining contact with your customers will increase the likelihood that they will stick with you instead of straying off to a competitor.”


9. Don’t put it off
Unless you are located in a hurricane or flood-prone area, preparation for a natural disaster may seem like an unnecessary demand on your time. But every year, thousands of unsuspecting business owners find themselves victimized by a natural disaster of one form or another. That’s why investing a little of your time in preparing a disaster preparation plan now will be a wise investment.

The last thing you need if disaster should strike is to be caught unprepared.


William J. Lynott is a freelance writer in Abington, Pa., specializing in business management, as well as personal and business finance; lynott@verizon.net.

 

July 2011
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