The most effective way to weather winter woes is to be prepared in advance. The West Virginia Small Business Development Center (WVSBDC) reminds business owners that preparation before a potential disaster is an effective first step toward recovery afterward.
The U.S. Small Business Administration West Virginia District Office reports receiving three disaster loan claims so far in 2014. In 2013, they received 83.
Lack of a disaster plan puts the business and the livelihood of its employees at risk. An estimated 25 percent of businesses do not reopen following a major disaster, according to the Institute for Business and Home Safety.
“The WVSBDC has a statewide network of business coaches that help companies prepare strategically for growth and success,” says WVSBDC Director Kristina Oliver. “That includes planning for the unexpected. Disaster preparation is a critical element in that strategy.”
WVSBDC coach Sam Payne is the “point person” for disaster preparedness coaching and training. Payne comes to WVSBDC with more than 25 years of business experience.
“The best way to recover from disaster is to be prepared before it strikes. Be proactive,” says Payne. “Develop a plan of action now so your business and your staff will be ready in case of a severe winter storm interruption.”
Payne recommends that businesses take basic steps such as:
- Review your insurance. Check your policy to verify what your insurance covers – and for how much — in case of damaging winter hazards.
- Determine the greatest potential risks. Is your business property likely to be affected by loss of access due to icy conditions, water damage from burst pipes or other hazards? What would be the cost to your business if it had to be closed for several days – or weeks? What upgrades or maintenance could prevent or reduce potential damage?
- Anticipate the failure of critical equipment, such as email server, key customer file server, heat or air conditioning. Determine how that would affect your business and assess options before a disaster.
- Include information technology (IT) in disaster plans. Keep a current inventory of IT hardware, software and data. Keep essential software and data backed up. Store the backups where they will be safe and accessible when needed for restoration.
- Establish procedures. Outline instructions for restoring electrical services on an item-by-item basis. Develop a system for relocating salvageable and undamaged supplies. Set up protocols for emergency communications so employees, customers and vendors know what is going on. Make sure employees know their roles in putting the plan into action.
- Identify who is responsible for what. Is the business owner or the landlord responsible for snow and ice removal? Who is in charge of ensuring equipment is properly insulated, lubricated and in good working condition for cold weather operation?
- Keep essential contacts handy. Compile a list of the names and phone numbers of employees, insurance agents, vendors and emergency services. Keep the list in a place and a form that you’ll be able to access it at need.
A disaster checklist can help businesses start planning and preparing effectively, Payne says. His presentations include planning checklists and similar resources available on the U.S. Small Business Administration website www.preparemybusiness.org/.
The SBA offers disaster assistance through capital, counseling and contracting services. The SBA Disaster Loan Program helps fund the recovery of private nonprofits and businesses of all sizes.
For more on disaster planning, contact Sam Payne, 304-553-2805, samuel.f.payne@wv.gov.
For information on other WVSBDC services and locations, visit WVSBDC.org or call the Business Ask Me! Line at 888-982-7232.
The WVSBDC is part of the West Virginia Development Office and creates economic impact through offering entrepreneurs and small businesses cost-effective business coaching and technical assistance. The West Virginia SBDC is funded in part through a cooperative agreement with the U.S. Small Business Administration. The WVSBDC is an Accredited Member of America’s SBDC network.
