Five disaster-planning steps for small businesses

Could your business bounce back if a disaster occurred?

A minimum of 25 percent of small to midsized businesses that close temporarily due to a natural or other disaster ultimately never reopen, according to the Institute for Business and Home Safety. However, it is possible to weather any type of business interruption if you’re properly prepared, according to The New Jersey Society of Certified Public Accountants.

In a news release timed to the second anniversary of superstorm Sandy, the association offered these tips to ensure you’re ready for anything:

1. Consider the risks — Is your business more likely to be affected by Nor’easters or winter snowstorms? Some disasters, such as fires or a burst water pipe, can hit any business, but others are more likely based on your location. As part of your initial planning, brainstorm all of potential disasters that might affect your business to determine best possible responses.

2. Identify what’s important — When the National Federation of Independent Businesses surveyed small and medium-sized businesses, 62 percent said that losing profits and clients was the biggest challenge after a disaster. In planning, consider all threats that could hinder recovery. For a service company, the inability to communicate with clients or fellow employees could be a serious problem, while manufacturers and retailers may face significant hardships with disruptions to vital deliveries of new supplies or merchandise. Once you decide what kinds of damage or losses could bring business to a halt, you’ll be in a better position to prepare.

3. Survey systems — Review your business systems to determine options if one or more were affected. Would employees be able to do their jobs if unable to get to the office, store or plant? Could they temporarily keep the business going using home office equipment, such as mobile phones and laptops? What separate location can you use to keep copies of vital company records, customer information, and details on passwords and other access codes? If your business is manufacturing, do you have access to another facility until the crisis is over? If you are a retailer, where can you find a short-term location? Consider before an emergency occurs.

4. Take first steps now — Even a short business interruption can cause problems. Power outages can occur any time, even without a disaster. Consider acquiring generators to keep operations running. Use surge protectors for computer equipment. Make sure employees are equipped with and can operate a fire extinguisher and how to evacuate in case of emergency. Be sure company leaders and vital support staff have contact info for all employees.

5. Create a business continuity plan — Be able to answer one key question: What will it take to get the business up and running in case of disaster? The answer varies for every company, which is why it’s so important to create a customized business continuity plan. These step-by-step details are necessary to return to normal operations or at least enable you to weather the storm.

For more info, visit www.njscpa.org/.

Look in Wednesday’s Home News Tribune and Courier News and on MyCentralJersey.com for coverage updating the impact of superstorm Sandy.