Arlene Soto

Question: If a disaster happens in my business, how do I recover? 

Answer: First, let me say I’m glad you are being proactive in addressing potential disaster before it happens. The best time to prepare is before you need to respond. Your business insurance agent is a good resource to help you create a disaster recovery plan.

Disaster is anything that causes your business to shut down for an extended period of time. It could be weather related, a natural disaster, a power disruption, computer failure, employee related or even inventory not being delivered in a timely manner. 

The first step to avoid a devastating effect is to prepare a plan. Be pessimistic and think about all the possible problems that could arise.

• Determine the probability each hazard will actually occur.  How critical will it be to recover quickly from the problem? Who needs to be a part of the recovery team? What other resources will be needed to recover quickly? What are the critical business systems that will need to be re-established? How will employees communicate, where will they go and how will they get their jobs done?

• Brainstorm possible solutions to any problem that is both probable and critical. Your insurance agent may have ideas that can help overcome some of the problems. Other businesses in your industry may have ideas. Often information is available through an industry association. To find your industry association, check the local library for the Encyclopedia of Industry Associations. The Federal Department of Homeland Security also has publications and information available at  http://www.dhs.gov.

• Determine what is necessary for your business to re-open. Is it the facility, information systems, equipment, employees or inventory? Devise contingency plans so critical items can be available quickly. Perhaps it’s creating a backup of information and storing it in a different location. Perhaps the community has a plan to help businesses reopen after a natural disaster. The Small Business Administration has a low-interest, disaster loan program, with info on the Web site at http://www.sba.gov. You also can call the Southwestern Oregon Community College Business Development Center advisor for more resources.

• Educate employees on the part they will play in getting the business reopened.

• Finally, don’t panic. Preparation will help you be more effective in running your business successfully. It may also help you reduce insurance premiums. Planning is the key to operating a business in a proactive manner, rather than reacting to problems and worrying about the outcome.

(Arlene M. Soto is the Director of the Southwestern Business Development Center. To ask a question, call 756-6445, e-mail asoto@socc.edu, or write 2455 Maple Leaf, North Bend, OR 97459.)