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!

Identify what matters the most

The first step in creating a plan for your business is to identify what matters most. For each business this is a unique list. If you own a service or consulting business you may not need to be concerned about inventory, but your paper and electronic records could hold the key to your on-going success. How will you protect those assets? Think about business continuity and how you could make that happen under the most difficult circumstances. How will you continue to service your customers? A disaster may impact your customers' ability to reach your goods and/or services. What if your employees are unable to return to work due to their own disaster related difficulties?

Your physical resources include the building where you do business, inventory, equipment and vehicles. Make sure these assets are protected as part of your plan.

Losses due to disaster can occur, even if your business is unharmed. Upstream losses are due to your suppliers being affected by the disaster and cannot deliver goods or services to your business. Downstream losses occur when your key customers are affected by disaster, and are not using your goods or services for an extended period of time.

Aside from the important issue of being able to continue to do business, as the business owner you are responsible for the safety of your employees and customers. Consider having some, or all of your employees trained in First Aid and CPR.

Make a plan

Once you have an idea of your critical needs, then you can begin to develop a plan that will take into account human resources, physical resources and business continuity. Involve your employees in the planning process. It's your business, but it is their livelihood and safety that is at stake as well. Having your staff involved with this process will also ensure a smoother implementation, should a disaster strike. Develop a crisis team with a representative from each department.

Set up a time frame to complete each stage of your plan, and a target date to have it completed. Once you have some kind of plan in place it is important to review and update it, at least once a year.

Resources

Check with your city officials for specific programs in your community. Many cities offer preparation guides and other resources to help their citizens and businesses be prepared.

Your insurance company may also have resources to help you assess your business needs.

Keep yourself informed. The Internet is an excellent source for many resources, such as: http://www.disaster-resource.com a comprehensive source for crisis / emergency management and business continuity information.

Avoiding or putting off this task will most definitely NOT make your life easier, in the long term. You carry with you every day, the knowledge that you really need to get this done, and that is stressful. Relieve that stress and create a sense of confidence within your organization, by developing a contingency plan and keeping your employees informed.