Expert Advice - December 2005

Be Prepared for the Unexpected

With Disaster Preparedness Plans

by Kara J. Kelley

Almost 50 percent of small businesses that face a disaster never reopen their doors. One in five –20 percent – of businesses have suffered a disaster that resulted in suspending operations for a period of time. Eighty percent of companies without concrete, tested business continuity plans are out of business within two years of a major disaster.

Whether it is nearby forest fires, a flood during the monsoon season or a power outage to your building, your business is vulnerable to the unexpected, including cyber attacks, terrorism, hazardous materials or the death of a key employee. The point is that it doesn’t have to be a catastrophe like a hurricane to be a disaster to your business. Any interruption can shut down your operation and significantly reduce your ability to serve your customers.

My guess is that most of you aren’t prepared. What "prepared" means is having a comprehensive disaster preparedness plan in place, whether your company has two employees or 2,000 workers.

Ask yourself:

Do you know how to secure your confidential information and records during an incident?

Have you identified the business functions that are critical to your company’s survival?

Do you know how to get in touch with your suppliers and venders, as well as your employees during a crisis?

Have you identified a recovery location from which you can operate your business in the event your offices are shut down?

If you answered "no" to any of these questions, then you are not prepared and your company is vulnerable to a disaster.

Businesses that develop comprehensive disaster preparedness plans have a much higher chance of surviving an interruption in their business operations. By investing time in developing a disaster preparedness plan, you and your employees will have a contingency strategy in place and the designated resources to better ensure your company’s survival.

The first step to disaster preparedness planning is the most difficult: getting started and focusing on the process. The basic steps of preparedness planning include:

Establish a planning team

Assess vulnerabilities and critical resources

Develop a comprehensive plan that includes a communication system and backup of all important documents and systems

Identify key roles

Communicate and practice the plan

The Las Vegas Chamber of Commerce is launching the Open for Business initiative to educate and encourage all Nevada businesses to develop a comprehensive disaster preparedness plan for themselves.

The Las Vegas Chamber of Commerce, in partnership with the Institute for Business and Home Safety, has published a toolkit guide to streamline the process and make it easy for you to create a preparedness plan. The Open for Business toolkit includes forms, checklists and easy step-by-step guidance to take the guesswork out of planning. The guide can be downloaded for free at www.lvchamber.com.

In addition, the Chamber will present the Open For Business disaster preparedness conference with local and national disaster preparedness experts. The workshop will give business owners and executives the opportunity to learn first-hand how to initiate and enhance a business’ preparedness plan. The Open for Business workshop will be held on January 19, 2006 from 7:30 to 11:30 a.m. For more information, contact the Chamber at 702-641-5822.

Kara J. Kelley
Kara J. Kelley is president and CEO of the Las Vegas Chamber of Commerce.