BY GLORIA STRAVELLI
Staff Writer
The city of Pass Christian, Miss., lost all of its stores, restaurants, buildings, and 85 percent of its homes to Hurricane Katrina. Would your business survive a natural disaster like Hurricane Katrina?
Estimates are that 40 percent of small businesses never reopen following a disaster, while only 8 percent have a comprehensive business continuity plan, according to the New Jersey Commerce, Economic Growth and Tourism Commission.
“The horrific scenes on the Gulf Coast really bring the issue of disaster preparedness and business continuity planning to the forefront,” said Commerce Secretary Ginny Bauer.
“For the majority of small businesses, the slightest disruption in normal operations means the difference between profit and bankruptcy.”
To help small businesses prepare, N.J. Commerce has compiled a comprehensive checklist, “A Blueprint for Emergency Preparedness,” that provides an overview of emergency preparedness information and resources for small firms. The checklist covers human resources, physical resources and business continuity, as well as steps to take after a disaster has occurred.
A copy of the brochure is available at www.newjerseycommerce.org or by calling (609) 777-0885. The brochure is also available at Small Business Development centers throughout the state.
“A Blueprint for Emergency Preparedness” grew out of recommendations of the Small Business Continuity Task Force formed by Bauer last year.
The task force is charged with helping small businesses respond to unpredictable events such as a terrorist attack or natural disaster by identifying measures to help reduce the impact of potential disasters on small businesses.
Intended as a tool for small businesses, the checklist condenses hundreds of pages of resource materials and information on emergency preparedness and business continuity planning.
The brochure’s first category, Human Resources, advises businesses to: maintain a phone list of key employees and customers, develop an emergency contact list, and leave extra keys and the alarm code with a trusted employee or friend.
Under Physical Resources, the brochure lists: inspect the building and determine what impact a natural disaster would have on the facility, and stock disaster supplies like a weather radio and first aid kit.
The Business Continuity Planning checklist includes backing up computer files, keeping a current inventory list and hard copies of records including lease and insurance policies, and reviewing the business’ insurance status.
Under Additional Resources, the checklist advises meeting with other agencies — the local Office of Emergency Management, fire and police departments and utility companies — about emergency planning.
Contacts listed include the N.J. Office of Emergency Management, the local American Red Cross chapter, Federal Emergency Management Agency Region II, and the Small Business Administration.
Back to Business — What to Do After a Disaster lays out recovery steps, including: contact insurance agent; have building inspected; restore utilities; re-establish communications with employees, customers and suppliers; assess damage; and clean facility.
Under Financial Implications, the checklist includes: determine lost income, gather information for insurance adjuster, keep records of extra expenses.
According to Hillary Cummons, director of public affairs for the Jersey Coast Chapter of the American Red Cross, a hurricane of less force than Katrina would have serious consequences for areas of Monmouth and Ocean counties.
“Based on the information we’ve gotten from meteorologists, if we took a direct hit from a Category 3 hurricane, the Bayshore and large areas of the county east of Route 9 would be covered with water. There are so many rivers, bays and tributaries, it would just be devastating,” he said recently.
While people are familiar with Red Cross services for hurricane victims, Cummons said the organization also helps businesses build in emergency preparedness planning.
“It’s a matter of simple things like having a computer backup off-site in case your building burned down and your server went. If you have a server off-site, then you’re going to be able to retrieve documents. It’s preparing for things like that,” he said. “What will you do if people can’t get into the office or warehouse? Who’s responsible for getting things done? Protection of records, client records? You must have a plan.”
The Red Cross’ “Preparing Your Business for the Unthinkable” is available on the Web site www.redcross.org
/services/disaster/be prepared.
The brochure urges businesses to formulate a disaster plan based on three factors: human resources, physical resources and business continuity.
“Think about how a disaster could affect your employees, customers and workplace,” it advises. “Think about how you could continue doing business if the area around your facility is closed.”
The first category, Develop a Plan, suggests having a phone list of key employees and customers, dedicating a voice mail number where you can record a message for employees.
Reduce Potential Damage outlines preventive steps to minimize disaster damage to a facility, like bolting tall bookcases to the wall, installing latches on drawers and cabinets.
Protect Your Employees, Customers and Business offers suggestions, including designating one employee from each work shift to be the safety coordinator.
Also available on the Web site is a Personal Workplace Disaster Supplies Kit list of items to have on hand in case you are confined to the workplace for several hours or overnight.
In addition, the Jersey Coast Chapter will provide speakers, videos and printed material to prepare personnel from a company to educate employees about disaster preparedness.
Available from the chapter is a comprehensive, 78-page “Emergency Management Guide for Business and Industry,” a step-by-step guide to developing a plan for emergency planning, response and recovery for businesses.
The guide is organized into four sections: Steps in the Planning Process, Emergency Management Considerations, Hazard-Specific Information and Information Sources.
The Planning Process includes establishing a planning team, analyzing capabilities and hazards, and developing and implementing a plan. Emergency Management Considerations is broken down into communications, life safety, property protection, community outreach, recovery and restoration. Hazard-Specific Information looks at scenarios including fires, hazmat incidents, floods, hurricanes and tornadoes, severe winter storms, earthquakes, and technological emergencies. Information Sources provides resources ranging from printed materials to contact information, and a vulnerability analysis chart completes the guide.
Interested business owners can contact the chapter’s disaster education department at (732) 741-3443.
“Disaster Preparedness for Business” is organized into chapters on Planning, Pre-disaster Preparedness, During-disaster Action, and Post-disaster Recovery. Appendices define hurricanes, tornadoes and floods, provide an outline for vulnerability analysis, outline specific measures for continuity management, and discuss selecting and protecting vital records. The guide is available from the chamber at (732) 741-0055 or at www.emacc.org.