Emergency Preparedness
This week, NJGCA participated in a seminar hosted by New Jersey Chamber of Commerce (NJCC). The presentation was facilitated by the New Jersey Business Action Center (NJBAC), focusing on emergency preparedness and what can steps can be done to keep a business operating through a crisis.
If you are unfamiliar with the NJBAC, it is a state entity that offers taxpayer supported assistance to the public on any number of business topics.
What we learned through the seminar is that small business owners are often at a disadvantage in navigating through a natural disaster or emergency. Unlike government entities and medium-to-large businesses, small business owners (such as our members) typically do not have the resources or staff to plan for every potential scenario.
Knowing this, we are presenting some substantive highlights for members to consider in protecting their own business operations.
In responding to a natural disaster or similar emergency, entrepreneurs should have a pre-planned strategy in place to implement when the situation arises. Keep in mind, such emergencies do not necessarily have to physically impact your location. An emergency could also include electrical failures, supply/product shortfalls, or even a transportation crisis.
Potential situational circumstances aside, owners should consider having a plan in place, how to mitigate damage (and stay operational) during the crisis, and then how to recover from that emergency after things return to normal.
In doing so, it is also important to note that there is an infinite number of possible strategies to prepare for a crisis. Every owner’s situation and resources are unique. Each business entity is different, is located on a unique piece of property, and has its own staffing dynamic.
No matter the circumstances, here is a useful starting point to being crafting your own continuity plans.
Part 1: Create a Preparation Plan
1 – Gather your team. Work with a team of key employees to draft a rough plan. Include any essential staff and managers, using their input to make changes and highlight operational needs.
2 – Review your location. Consider what crisis might impact you at your location (i.e. flooding, cyber-security/hacking risks, a pandemic, prolonged electrical outages, etc).
3 – Inspect your building and assets. Inspect your physical location for possible issues (roof or siding leaks, flooding dangers, security weaknesses, etc). Also consider your online operational infrastructure and the possible impact (such as credit card processing, cloud computing or storage, etc).
4 – Consider your inventory and equipment. Think through how to move your inventory, sensitive equipment, important physical files/documents, computer hardware, and other needed assets to avoid damage during the emergency (i.e. moving computers for inventory off bottom shelves or floors to avoid damage in a flood). If necessary, look to see if important documents or computer servers should be retained at an offsite location to avoid a loss. Such documents could include business financial documents, contracts, and copies of your insurance policies. If you operate a convenience store, tabulate how your food-stock losses if you lose refrigeration.
5 – Insurance considerations. Review your insurance coverage. Take stock of what the policy states, what it covers/does not cover, and purchase additional insurance if needed. For example, you can purchase a policy that covers inventory and equipment losses. You may also wish to purchase business interruption insurance, which will be financially beneficial should your location be closed for a protracted amount of time.
6 – Emergency supplies. In the case of a physical- or weather-related crisis, you should prepare a “disaster supply kit” with important products and resources. This is especially important if you are directed by authorities to “shelter in place” through an emergency. A kit could include fires aid supplies, weather radio, flashlights, drinking water, shelf-stable food supplies, cellphone chargers, etc.
7 – Review contacts. Look at what emergency contacts will have to be called if a crisis arises. While we all have computers and cellphones to use, print out a physical list to keep on hand (remember, you may not have working electronics during a power outage). A list should include obvious contacts such as police, fire department, local- or state-government, and hospital or EMS services. But it should also list contact information for your suppliers/vendors, your customers, utilities, and your employees.
8 – Secondary location. If your physical location needs to be “abandoned” during the emergency, consider planning to operate out of another location to keep your business running. For example, if you are operating a repair shop, could you take your customers’ vehicles and make repairs from another shop or location?
9 – Pandemic preparations. If a pandemic should arise, and employees are either quarantined or sick, plan to cross-train your staff on all the various responsibilities. You should also consider keeping sanitizers, face masks, cleaning supplies, and other materials on hand. You should also speak to a legal counselor or human resources professional on the latest laws and regulations surrounding vaccinations (do you need to retain proof of vaccinations?), accommodations, and related topics.
10 – Communicate with staff. Once a plan is in place, speak with all your employees about what you’ve drafted, and seek their feedback. Can it be improved? Make sure all employees are aware of the final plan, especially if cellphone or email communications are limited before/during/after the emergency.
Part 2: Operating through the crisis and mitigating your losses
1 – Risk reduction. During the actual emergency, and as you continue to operate, minimize potential risks by keeping non-essential employees at home. Your employees are your shops most valuable resource; keep them safe.
2 – Communicate with authorities. Keep in touch with (or listen for announcements from) state/municipal officials; paying close attention to the “Office of Emergency Management” and related announcements.
3 – Physical damage. If the emergency is physically impacting your location, unplug (and possibly move) important equipment, turn off your gas or water service, and properly secure your building (boarding up windows, making doorways and windows are locked, etc). If it appears your building is not safe and there is a structural issue, evacuate the location.
4 – Document everything. If there is any damage, be sure to take pictures and document/record any losses. This will be important in the recovery phase.
5 – Update insurance carriers. Contact your insurance company to report damages and notify them that you’ll likely be submitting a claim after the emergency ends. They may be able to schedule an adjustor ahead of time to visit your location after the crisis ends.
Part 3: Post-Disaster Recovery
1 – General assessments. Review your location and equipment to assess damage. Take note of your windows, doors, and foundation. Look around to note obstacles or debris on the property; as well as damage/loss of equipment/inventory. If the building is seemingly unsafe, call a professional to inspect the building and make sure it is sound.
2 – Clean up. If there is water damage, debris, or other physical obstacles, start clearing out the facility (or remove from your property) anything that might hurt you, your employees, or customers.
3 – Reopening punch-list. Make a list of action items that may need to be accomplished before you can reopen.
4 – Insurance submissions. Contacting your insurance company to submit a claim on physical damage or loss of equipment.
5 – Loss of profits. If your business was forced to shut down or may need additional time to reopen, consider filing an interruption of insurance claim.
6 – Contact outside entities. Consider any “structural financial obligations” that may need to addressed. This could include contacting your utility company, payroll processor, vendors/suppliers, or regular outside consultants/contractors.
7 – Communicate with everyone. Communicate with employees and customers about the posture of the business post-crisis, the anticipated time to re-open, and how they will be affected.
Again, this list is a general outline of possible items to include in each phase of a crisis. Every business is different, with its own singular characteristics and needs.
Have you planned for such emergencies? Where you ever forced to execute your plan during a disaster?
If so, let us know how your preparations served you through the crisis, and what you wished you’d have known before/afterward to have better navigated the situation. We can possibly share such insights with members in a future communication.
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