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A DISASTER PLAN

© Barbara Massie

Disasters do come to businesses unexpectedly. In the last article insurance needs were described and told of the need for business-interruption coverage. But this is not the only thing that will help if disaster strikes your business. Write a disaster plan, then when an emergency happens and emotions are unstable, you will have the plan as a guide. Read Create a Family Disaster Plan to get ideas.

Sit and think about the worst case scenario of what could impact your business. This might sound very negative, but by looking at the worst case you can plan how to react and cover:

• Losses of inventory
• Product
• Profit
• Time

Make a list of things that could happen that would cause problems with production or selling.

Create a backup plan for each item on your list. Of course, in each case you should also determine how to avoid a calamity that will impact business; try to map out a plan of how to avoid different kinds. When you have questions about the legal aspect of experiencing a disaster a site that can help is the American Bar Association's Division for Legal Services

If fire or flood hits your business, you would have to move the business to another location. Finding a location can take time, but plan for an interim location to get through the crunch. A wonderful site to help you understand property insurance is Property Insurance Glossary Investigate the businesses in your area that do similar work and have room to allow you to work if you had to have a temporary facility. Perhaps another business owner will want to go into a reciprocity agreement with you. If either business is hit by disaster, both will work together to help keep the affected business up and running.

Become good friends with your suppliers. In case of an emergency when insurance money is still forthcoming, a supplier who is a friend can spell the difference between having inventory to manufacture products or not.

Consider the worst case scenario, then come up with other ideas. This disaster plan should become a part of your business plan.

An Apology: All e-mail directed to me during six weeks of September and October was lost due to two computer glitches. If you e-mailed and didn't get an answer, please resend the message.

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