Risk Assessment & Planning
- Identify potential threats:
- Natural disasters (floods, fires, earthquakes, hurricanes).
- Economic risks (recession, supply chain disruptions).
- Operational risks (cyberattacks, power outages, equipment failure).
- Prioritize risks based on likelihood and potential impact.
- Create a Business Continuity Plan (BCP): Outline steps to maintain operations during/after a crisis.
Emergency Response Plan
- Assign roles: Designate a disaster response team (e.g., safety officer, communications lead).
- Evacuation procedures: Map exit routes and safe meeting points.
- Emergency contacts: List local authorities, employees, vendors, and insurers (keep printed/cloud copies).
- Employee training: Conduct drills (fire, earthquake, etc.) and first-aid training.
Data & Financial Protection
- Backup critical data: Use cloud storage (Google Drive, Dropbox) + offline backups (external hard drives).
- Secure financial records: Ensure access to bank accounts, invoices, and tax documents.
- Cyber security: Install firewalls, antivirus software, and train staff on phishing scams.
Physical Asset Protection
- Insurance review:
- Property insurance (covers damage to physical assets).
- Business interruption insurance (replaces lost income during downtime).
- Liability insurance (for lawsuits or customer injuries).
- Safeguard equipment: Elevate electronics/flood-prone items, install surge protectors.
- Inventory management: Keep an updated list of assets (photos/videos for insurance claims).
Supply Chain & Vendor Preparedness
- Diversify suppliers: Avoid reliance on a single vendor.
- Stock essentials: Maintain extra inventory of critical supplies.
- Vendor communication plan: Confirm backup suppliers and alternate shipping routes.
Communication Strategy
- Employee alerts: Set up mass notification systems (e.g., SMS, Slack, email).
- Customer updates: Draft templates for social media/email to inform clients of closures/delays.
- Remote work protocols: Ensure staff can work from home (VPN, cloud tools like Zoom, Trello).
Economic Downturn Preparedness
- Cash reserves: Aim for 3–6 months of operating expenses.
- Debt management: Reduce high-interest debt and negotiate flexible payment terms.
- Diversify revenue streams: Explore new markets, products, or passive income options.
Post-Disaster Recovery
- Damage assessment: Document losses for insurance claims.
- Relocation plan: Identify temporary workspaces if needed.
- Employee support: Provide counseling or flexible schedules post-crisis.
Regular Review & Updates
- Test plans annually: Simulate scenarios (e.g., mock cyberattack, supply shortage).
- Update contacts/plans: Refresh emergency lists and BCP as your business evolves.
Bonus Resources
- FEMA’s Ready Business Program: www.ready.gov/business
- SBA Disaster Loans: www.sba.gov/funding-programs/disaster-assistance
- Free BCP Template: CDC Business Continuity Plan