Hurricane-proof Your Business

When Chana Daniel packed up to evacuate from the New Orleans area just before Hurricane Katrina hit last year, she had no idea she would never be able to return to her business. As a hair stylist with her own salon, Daniel’s business was completely wiped out after the hurricane made land. Not only was the salon located in one of the hardest hit areas, Daniel’s customer base was suddenly non-existent.

“My livelihood depended on those clients, and suddenly those clients were gone,” Daniel said. “It’s a scary feeling to not know if you’ll ever get back to where you once were.”

Like most Katrina victims, Daniels was unprepared for the vast devastation that the hurricane caused. Thousands of businesses failed after the disaster simply because they lost contact with employees and customers. Many small companies either don’t have an emergency plan or has one that is outdated.

Daniel was forced to relocate for months while she got her business and personal affairs in order. Thanks to a loan from the Small Business Administration, she was eventually able to return home and open up shop again, but trying to drum up business was still a daunting task given that many of her regular customers were scattered across the country.

“Every time one of my customers comes back to town, it’s a blessing,” Daniel said. “I do have some new clients now also because a lot of the other hairdressers in town aren’t coming back.”

According to the Red Cross, as many as 40% of businesses do not reopen after major natural disasters. No business should operate without a disaster plan.

PLANNING

Your employees are your most valuable asset. Get your employees to think ahead. Create a contact list and keep the information up-to-date and accessible to everyone. Include emergency numbers for local agencies such as the fire and police departments, hospitals and government relief agencies. Offer staff training in CPR and first aid. Make sure key employees have access to cash, generators, batteries, food, water and a fully stocked first aid kit.

Designate a command person in your absence. No one likes to think about their own demise, but if you were seriously hurt, who would run the business? Designate a member of your management team as the point person if you are unable to lead and clearly communicate to other staff members who is in charge in the event of such an emergency.

Revisit your insurance policy. If you don’t have business interruption insurance, consider upgrading your policy to include this type of coverage. Interruption insurance would continue to pay salaries, utilities and possibly rent for a temporary office.

Back up computer files on a regular basis. Anything you cannot easily replace should be backed up. This may include personal projects, financial information, employee files and your e-mail address book. There are many software packages available that are reasonably priced to create a separate copy of all important files.

Protect the office and equipment. If possible, unplug computers and other electronic equipment and store in a high place. Stock up on plywood, tape and other items needed to shield the windows from flying debris. If you and your employees have to evacuate, consider leaving the office lights on to discourage looters. Consider finding emergency office space ahead of time in the event that your office or building is damaged.

Related posts:

1. Hurricanes & Intranets
2. Get Ready for Florida Hurricane Season
3. How One Small Business Trumped Hurricane Katrina With Help from the Local High School