The BizFilings blog covering business tips and trends.
Is Your Small Business Prepared for Disaster?
Published on Aug 4, 2010
Read 'Is Your Small Business Prepared for Disaster?' at 'Time to Start Up,' the small business blog by BizFilings.
A few years ago, one of the franchise owners I worked with experienced catastrophic detriment to his retail store when a tornado struck his town of Springfield, Ill. He was shut down for almost a month - pretty severe considering the tornado's ground action only lasted a mere five minutes. In the wake of this tornado, he was left with shattered windows, water damage and other interior damage.
If you were to face a similar situation of this magnitude, would you be ready for it? Barbara Weltman recently cited that according to a Traveler's survey, "44% of small businesses do not have a business continuity plan, and only 36% have ever spoken with an insurance agent about developing one. This is despite data from the American Red Cross showing that 40% of small businesses do not reopen after a fire, storm or other major disaster."
Weltman also included tips from the American Red Cross to help you perform a risk audit:
In some locations, The American Red Cross offers programs through which continuity of operations plans (COOPs) are individually reviewed. Reviewers then make recommendations on how a business can be better prepared.
In other locations, the American Red Cross hosts seminars on COOPs. Check with your local chapter for information.