Small-business owners already know that a natural or man-made disaster could seriously disrupt their livelihood. Up to 40 percent of businesses fail after a disaster, according to the Insurance Information Institute. Yet only 43 percent feel prepared to handle an extensive emergency.
The destructive wildfires and tornadoes that have struck already this spring serve as a strong reminder that nature can unleash devastating consequences. Now is the time to get ready to handle any and all emergencies.
“A little bit of action can save you in the long run,” says Tom Heneghan, manager of preparedness for the American Red Cross in Washington, D.C. “Thinking through the steps ahead of time really makes a difference when you need to take action on the spot.”
Awareness
Many small businesses don’t know where to start. Others believe they lack the time, energy and resources to tackle preparing for a disaster, explains Shane O’Connor, program advisor for FedEx Global Citizenship
That’s why the American Red Cross and FedEx are hosting a virtual roundtable on disaster preparedness focused on the special needs of small businesses. The discussion, which will be streamed live for online viewers, will take place from 11:30 a.m. to 12 p.m. Central on May 22 via the FedEx Facebook page. The roundtable panelists will convene in Joplin, Mo., to commemorate the first anniversary of the catastrophic tornadoes that struck the city. The powerful tornado killed 160 people and caused approximately $2 billion in damage, making it the worst tornado in the U.S. in the past 75 years.
The panel will take live questions from virtual audience members and offer tips and advice on actions businesses should take to prepare for disasters. Mike Beatty (publisher of The Joplin Globe) will serve as moderator. Panelists include Tom Heneghan (manager of preparedness for the American Red Cross), Rob O’Brian (president of the Joplin Area Chamber of Commerce) and Randy King (managing director with FedEx from New Orleans, who experienced Hurricane Katrina firsthand).
To register for the event, go to the FedEx Facebook Event page.
Assessment
In the meantime, you can begin to assess your current disaster readiness by answering these questions from the American Red Cross:
1. How vulnerable is your region to natural or manmade disasters, and how vulnerable would your business be in the face of one?
You need to know the potential for natural disasters or industrial accidents in the region where you operate. Are you located in Tornado Alley? Does flooding occur every spring? Find out how prior emergencies affected local small businesses.
Contact your insurance agent and make sure your company has coverage for potential hazards. Keep in mind that general policies often don’t cover floods and earthquakes.
2. What’s your plan for protecting your business and employees before, during and after an emergency?
Organize a planning committee to help you write a continuity plan that will guide you in maintaining operations after a crisis. Identify essential business functions and the employees responsible for them. Develop a system for backing up, restoring and accessing vital electronic business records.
Obtain necessary safety equipment, such as fire extinguishers, defibrillators, smoke detectors and onsite supplies, in case employees must remain at your facility during and after the incident.
Outline best practices your company will follow during an emergency. Designate a leadership structure that details those in charge. Create a system for warning employees about emergencies and communicating with them during the disaster. Develop staff evacuation procedures; pinpoint where to obtain shelter and plan for medical emergencies.
Assistance
For more in-depth assistance, take advantage of expert online resources: The American Red Cross Ready Rating Program is a free, self-guided assessment designed to help businesses, organizations and schools evaluate how prepared they are for emergencies. With their personalized Ready Rating results in hand, users gain access to tips and best practices that aid in preparedness.
“Preparedness is a lot like working out and eating healthy. People know they should do it, but it’s not at the top of the list. They think a disaster won’t happen to them,” Heneghan says. “Ready Rating makes preparedness accessible and easy to understand. It allows an organization to get a snapshot of its vulnerabilities and understand how to address them.”
“Limited resources can make a small business especially vulnerable in the face of a disaster,” says O’Connor. “Preparedness is key to both surviving the immediate crisis and weathering the longer-term effects.”
A rebroadcast of the virtual roundtable will take place at 6:00 p.m. Central on May 22, with representatives also logged on to the FedEx Facebook page, available to answer more viewers’ questions. For those who can’t tune in on May 22, video highlights of the roundtable will be archived on the FedEx Facebook page.
Suzy Frisch is a Twin Cities–based freelance writer. She’s covered business, politics, law and many other topics for a range of publications, including Twin Cities Business magazine, the Star Tribune and the Chicago Tribune.
Note: The opinions expressed in this article are those of the author and do not necessarily reflect the views of FedEx.