How To Create A Contingency Plan
Disasters, such as the recent flooding in Nashville, have a far reaching economic impact. As we find ourselves in recovery mode some business owners are asking themselves when and if they can re-open. With issues ranging from the physical loss of property or product to loss of vendors and customers the U.S. Department of Labor says that over 40% of businesses never reopen after a disaster.
So many circumstances are beyond our control as business owners, but one thing we can do it plan. Contingency plans or disaster plans can be scary to think about because we are planning for something we hope will never happen. It isn’t a plan B, it’s a worse case scenario.
As a department Assistant Manager in a bank in an international port town maintaining a Contingency Plan was part of my responsibility and part of it actually went into effect on the morning of 9/11.
Recovery after a disaster can take many avenues depending of the size of your organization but I will focus on the Small Business Owner.
1. You’ll need to assess your damage. Everything from minor to total loss should be documented. Having a comprehensive inventory of your office plus any product loss will help expedite insurance and federal aid and will be important when claiming the loss on your taxes.
2. Overall finances can take a serious hit during a disaster, especially in circumstances where both the home and the office have been lost. Naturally you will take that into consideration when planning to re-open your business, however I must note that the work from home business can be such, that as soon as you have a computer and a cell phone you are back in business. Since time is of the essence this may be good news for your business when faced with a city or state wide problem.
3. Creating a plan and executing isn’t always easy when there are so many other irons in the fire. Here are a few tips from Patmos Consulting in Nashville that may help: Tips for Creating a Plan and Working The Plan to Help Your Business Recover.
My Contingency Plan is a file folder with the following information:
a. Important Contact Numbers – Emergency Personal, Closest Business Partners, Vendors, and Regular customers (If you have employees they should be on your contact list)
b. Office equipment list and photos as well as a list of what I’d need to be operational
c. List of software
d. List of online tools and passwords to access them
e. Back up hard drive of all my files. – Technology is such that if you have data that if lost would ruin your business off site storage and retrieval systems are becoming more affordable for the small business owner.
f. Copy of the business plan.
g. A check list of what I need to do to get up and running in case I experience a total lost
NOTE: A copy of this folder is also kept off site at an out of town family members home.
I know it can seem like a bit too much, but once it’s done it’s just a matter of reviewing it every year and hoping you never have to use it. Anything from a complete computer crash to a natural disaster can shut a business down. Being prepared can help get you in to action mode and help you make sound decisions on the future of your business.
Gift & Appreciation Marketing Specialist with OBB Nashville
Be Original! Give Original!
Tags: Contingency Plans, Getting back to Business, Nashville TN, Plan B, Small Business, Worst-case Plans
Posted in Music City, Nashville TN, OBB Nashville | No Comments »
