5 Ways N.J. Business Owners Can Prepare For A Disaster

Is your business prepared for a flood, cyber-attack, chemical spill, fire or long-term power outage?

Up to 40 percent of small businesses never re-open following a disaster, according to Don Newman, director of small business advocacy for the New Jersey-based Business Action Center. But getting prepped for a catastrophe may be easier than local business owners think, he said.

Newman recently shared a list of five simple ways that Garden State entrepreneurs can help themselves to weather a worst-case scenario.

• House documents on the cloud, not your office computer: Most businesses keep on-site records and files that are essential to normal operations. To reduce your vulnerability, determine which records, files, and materials are most important and back them up. These may include income tax forms, QuickBooks files, customer contact lists, strategy documents and passwords. From there, save these files on the cloud using an affordable service like Dropbox, Google Docs or Box so you can access them from anywhere.
• Keep office property secure: Raise computers above the flood level and move them away from large windows; move heavy and fragile objects to low shelves, and secure equipment that could move or fall during an earthquake. In addition, hire a cyber security expert to make sure your systems are secure and virus free. Protect your most important documents, credit card numbers, email correspondence and more by hiring an expert to set up a secure system well in advance.
• Plan for business continuity: Establish a clear plan for decision-making if the business owner is incapacitated. Ensure passwords as well as keys, alarm codes, phone forwarding, etc., are provided to trusted employees in the event of a disaster. Consider financial obligations you will have during interruption, such as payroll and debt service, and ensure a system is in place to pay bills electronically. Establish a social media presence for your business (LinkedIn, Facebook, Instagram or Twitter), and use the social media tools to communicated with your customers about your business’ status.
• Make sure your insurance is current: Review your insurance coverage with an agent or your insurance center; specifically check the status of your business’s interruption insurance. If disaster occurs, you can file a business interruption insurance claim detailing lost income and steps required before the business can reopen. For insurance and tax purposes, be sure to maintain written and photographic inventories of all important materials and equipment – and store in a safety deposit box if possible.
• Consider installing an emergency generator: Power outages are commonplace during disasters, and they may last for several days. As a result, even businesses that are not severely damaged can suffer losses because of the interruption of normal operations or the loss of perishable stock. You can reduce these losses and speed the recovery process by installing an emergency generator in advance.

Photo: Tony Webster, Wikimedia Commons

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