Storm Preparation & Recovery: How to Bounce Back When Weather Affects Your Small Business
By Margot Carmichael Lester, Staples® Contributing Writer
Restoring operations quickly after a weather emergency is critical because downtime is expensive. According to data from IDC Research, each hour of downtime costs your business between $8,200 (for companies of less than 10 employees) and $25,600 (for 100- to 500-employee enterprises).
Here are six basic steps to ensure business continuity after a weather event:
- Get Back to Work. To address issues, stock the items you rely on during the kind of bad weather you experience most, such as ice melt or flood barriers. If your workplace is damaged or inaccessible, you may need to work from a remote location, like Jim and Gaye Aaberg of SYNERGY HomeCare in Bloomington, IL. “When we first set things up, we thought in terms of being sheltered in place for 24 hours,” Jim recalls. Now they stock up for the longer term, including food, water, toiletries and even bedding, which created an unexpected marketing opportunity. “This year we had the idea to have branded blankets made for our clients.” Outfit the remote locations with office supplies and equipment like an all-in-one printer. Then you’re ready to reach out to employees and launch disaster response procedures. Learn more about setting up another office.
- Restore/Secure Power. Power can be out or spotty after a weather event. Access to a generator preserves valuable assets and keeps essential equipment running. Larger operations may need industrial generators; others can often function with smaller units. “We bought devices that are always plugged in and can be used to charge a phone,” Jim says. “Additionally, we bought power supplies and surge protectors that have battery backups, so when the power goes out we don't lose our computers.”
- Access and Restore Data. Carl Mazzanti, CEO of eMazzanti Technologies in Hoboken, NJ, recommends backing up your entire system to an off-site location — something you should be doing regularly, but definitely when you know bad weather is on its way. A data recovery service can coordinate an orderly recovery of services. “[You] can run applications from the secondary site for as long as necessary, then return applications to the primary site when it’s operational.” Automate backups yourself if you have the server space, or work with an IT service offering backups and disaster recovery as a service option. See how to choose the right backup solution.
- Work the Phones. There are a lot of calls to make immediately after a weather event. Have a hard copy and cloud-based list of key contacts, such as hospitals (insurance-preferred and closest); local offices and headquarters for utilities and health, property and business insurance providers (along with account/policy numbers); building/property manager and security staff; county emergency management agency; employees’ personal and emergency contacts; and key support contractors, vendors and suppliers. It’s also vital to have access to critical records like deeds, tax returns, financial reports, purchasing and loan documents, contracts and other legal paperwork. Store them safely for physical access with a fireproof safe and for online access with a network-attached or cloud storage solution.
- Register for Disaster Assistance. If you’re in a declared disaster area, register with FEMA to see if you qualify for federal disaster assistance, including an SBA loan to help with repairs. “If you are a small business owner or a private, non-profit organization and the business’ property was not damaged, you may apply for a working capital loan from the SBA to relieve the economic injury caused by the disaster,” counsels Marianne Markowitz, regional administrator for the U.S. Small Business Administration. In addition to the loan forms, you need current personal financial and profit-and-loss statements, a balance sheet and a list of debts. Find out more about the paperwork you need for a business loan.
- Communicate with Customers. Assign a person or team to reach out to customers. “If your customers don’t have access to you after a disaster, there’s a good chance they will take their business somewhere else and you may never be able to bring them back,” warns Bob Freitag, president of AmeriClaims Inc., a firm of public adjusters in Indian Trail, NC. “Let customers know how you are continuing to serve them or when you’ll be up and running again.” If necessary and possible, forward phones to a designated answering service and provide “very regular updates on all your social media channels.”
“Don’t become paralyzed by the thought of how overwhelming developing a business continuity plan can seem,” says Jim Butterworth, director of the Georgia Emergency Management Agency/Homeland Security in Atlanta. “The planning process can be divided into steps making it easier to tackle. It’s critical to the safety of your employees and health of your business to prepare for these scenarios, no matter where you live or how you work.”
This article provides general information and is not intended to replace professional and personalized safety, legal or insurance advice. Consult with your own advisors and review local/state/federal regulatory guidelines and requirements when creating or updating your plan.