The best time to respond to a disaster is before it happens - a relatively small investment of time and money now may prevent severe damage and disruption of life and business in the future. Every area in the country is subject to some kind of disaster ?flood, hurricane, earthquake, ice storm, and landslide, to name a few.

Even man-made disasters - oil spill, civil unrest, fire, etc. - can devastate the surrounding neighborhood and economy. Even though an area has never been damaged before, there is no guarantee that it will not happen tomorrow.

Ask yourself: what if the worst happened? How would it affect my business and my family? Would we survive if the business were closed down for weeks, months, or perhaps my entire revenue season? What can I do to make sure we survive?

Be a little pessimistic now, and assume it CAN happen to you. Develop a Disaster Plan for your home or business now so you can rest a little more easily in the future.

You should think about:

• Open for Business: A Disaster Planning Toolkit 
• Facilities (Buildings & Equipment)
• Operations
• Critical Information & Communications
• Insurance

A DISASTER PLANNING TOOLKIT

• Identify the hazards you may face
• Plan for and reduce the impact of disasters
• Keep your doors open after a disaster hits
• Advise you on insurance, disaster supplies and the things you can do to make your business more disaster resistant

FACILITIES-BUILDINGS & EQUIPMENT

• What would we do if our facility were closed for several days, damaged or even totally destroyed?
• What could we absolutely not survive without? Production machinery? Computers? Custom-made parts? The buildings? What can I do to assure I never have to live without them?

OPERATIONS

• What if there was a prolonged power outage?
• What if my key suppliers or shippers were shut down even though I am not?
• What if my customer base suffered a disaster and no longer needed or could not afford our product?

CRITICAL INFORMATION AND COMMUNICATIONS

• What if my payroll, tax, accounting, or production records were destroyed?
• What if my computer or computerized machinery was destroyed?
• What if the local phone service were disabled?
• Forewarned is forearmed, they say. How can I be forewarned?

INSURANCE

• Is my insurance adequate to get us back in operation?
• Do I understand what is covered and what is not?
• Can I pay creditors, employees, and my own needs during a prolonged shutdown?
• How long can I survive if we are shut down?

INSTITUTE FOR BUSINESS & HOME SAFETY (IBHS)

A community relies on its businesses to generate jobs and tax revenue and to nurture a built environment that is healthy and sustainable. When a business protects itself from natural disasters, it is also protecting one of its community's most valuable assets. There is no way to avoid a natural disaster from occurring. You can, however, take action to avoid the most devastating damage that your business may face.

A new guide from IBHS and the United States Small Business Administration that introduces disaster planning and recovery for the small business owner. Suggestions on steps you can take to protect your building, contents, employees and customers from earthquake damage is included in this guide.

FACILITIES TIPS

Develop contingency plans to remain in operation if your office, plant, or store is unusable. Could you operate out of your home or a nearby storefront? Could you quickly transport critical items such as computers, inventory, and equipment? Could you save replaced equipment and reactivate it in an emergency? Could you store inventory, equipment, and supplies off-site? Examine the possibilities, make a plan, and assure that you and your employees know what to do.

Keep an extra of any hard-to-replace parts or supplies on hand. Store them off-site. If this cannot be done, work with suppliers in advance to assure a secure and adequate supply. Store several days?supply in a place that is not vulnerable to the same disaster as your facility. Be sure to keep this auxiliary supply up-to-date.

Make upgrades now that would prevent possible future damage. Strengthening exterior walls, adding a retaining wall, or shoring up a creek bank are relatively minor projects in comparison to losing the building to flood waters.

OPERATIONS TIPS

Purchase a backup generator to maintain full operations or critical functions such as refrigeration, lighting, security systems, and computer control in the event of a power failure.

Have back-up vendors and shippers in place in case your primary ones are disabled. Set up relationships in advance and maintain them. Place occasional orders so that they regard you as an active customer when you need them.

Guard against loss of your customer base by diversifying your product lines, sales locations, or target customers. Make it part of your annual plan to develop new customers, even if your current customer base seems fine. Make the time to do so.

INFORMATION & COMMUNICATION TIPS

Make backup copies of all critical records such as accounting and employee data, as well as customer lists, production formulas, and inventory. Keep a backup copy of your computer抯 basic operating system, boot files, and critical software. Store a copy of all vital information on-site and a second in a safe off-site location. Make it a critical part of your routine to regularly back up files.

Make pre-arrangements with computer vendors to quickly replace damaged vital hardware. Keep invoices, shipping lists, and other documentation of your system configuration off-site so you can quickly order the correct replacement components. Take care of credit checks, purchase accounts and other vendor requirements in advance so that the vendor can ship replacements immediately.

Surge-protect all computer and phone equipment through power and phone lines. A power surge through a telephone line can destroy an entire computer through a connected modem. Invest in a surge protector that has a battery backup to assure that systems keep working through blackouts.

Maintain an up-to-date copy of phone numbers, computer and Internet logon codes and passwords, employee phone numbers and other critical information in an accessible location. Develop an employee "telephone tree" to rapidly contact employees in an emergency.

INSURANCE TIPS

Review your current insurance coverage. Is it enough to get your business back in operation? Will it cover the replacement cost of vital facilities? Make it a regular annual procedure to review and update insurance. Also remember that insurance on mortgaged property probably only covers the lender with nothing left over for you.

Be aware of your contents insurance. Does it cover the replacement cost of critical equipment?

Know what your insurance does not cover. Most general casualty policies do not cover flood damage. Many require additional riders for windstorm, sewer backup, or earth movement. Consider adding coverage for likely perils, especially flood insurance.

Consider business interruption insurance that assists you with operating needs during a period of shutdown. It may help you meet payrolls, pay vendors, and purchase inventory until you are in full operation again. Also be prepared for the extraordinary costs of a disaster such as leasing temporary equipment, restoring lost data, and hiring temporary workers.

Don't assume that, just because it never happened before, it never will. Flooding patterns are changed by development: water, which runs off new streets and parking lots, may overwhelm nearby streams and surrounding land. Landslides and sinkholes may develop because of distant earth movement, natural or man-made. The creek by your building may be a tiny, placid stream that has never flooded, but a downpour may change it into a destructive torrent that destroys your building foundation.

Plan for the worst.

www.sba.gov/disaster_recov/index.html