March 28, 2024

Small Business Advice

Tips for disaster planning

Jerry Osteryoung | 9/16/2016

"The method of the enterprising is to plan with audacity and execute with vigor."

~ Christian Nevell Bovee

Hurricane Hermine just passed through Tallahassee and should be a reminder to every business owner that planning for the unknown is so important, no matter where you are located.

Many businesses in the area thought Tallahassee was immune from hurricanes because it had been 30 years since the last one hit here. Tallahassee has escaped unscathed so many times, but this time Hurricane Hermine, a Category 1 storm, caused significant disruption for much of the city mainly because of power losses and the communications challenges that usually brings. It is impossible to have communications without power. In the hours and days following Hermine, you could look around town and tell which firms had plans they were able to successfully implement. Many of them had generators on location so they could restore power and continue normal operations.

Those who did not have plans are trying to hang in there, but the picture is not pretty. Many of them are struggling to get their doors open. Others are struggling to keep up with excess demand. This can be taxing as well.

For example, contractors and roofers have likely had their phones ringing off the hook. Restaurants too are likely seeing more business than normal operations are equipped to support.

The day after Hurricane Hermine hit, we were without electricity and, like many other residents, we tried to find an open restaurant. When we did, we found a restaurant that was so out of control, customers were leaving in droves. Servers were not coming to the tables because they were unsure which were their responsibility. Customer service was severely impacted because a lack of planning left the restaurant unequipped to handle the unexpected demand. I overheard many customers saying as they left that they would never return to that restaurant again.

Now, while it is fresh in your mind, is a good time to develop an emergency or disaster plan you can implement quickly should a disaster impact your firm. The following are some very important things to consider in your plan:

  • How will you communicate with your staff and who will do the communicating?
  • How will your staff communicate with you?
  • What are the criteria that will determine whether you stay open or remain closed?
  • Can you continue to exist and operate without power?
  • If you have no power, how will this impact your staff if they have to operate in buildings with high temperatures?
  • What will happen if your technology fails and how will you remedy the situation?

The important thing to note about planning for emergencies is that you are not going to know what is going to happen or when. Whether it is a hurricane, computer failure, unexpected demand or another major event, you will rarely have warning, but you can -- and must -- have a viable plan to address any challenge your business might face.

I have found the best way to do this is to develop a series of scenarios and get staff to help create the plans to deal with them. This will help with buy-in as well as ensure all levels of the organization have had input in the planning process.

Now go out and make sure you have plans in place should a disaster affect your business.

You can do this.

Dr. Osteryoung has directly has assisted over 3,000 firms. He is the Jim Moran Professor of Entrepreneurship (Emeritus) and Professor of Finance (Emeritus) at Florida State University. He was the founding Executive Director of The Jim Moran Institute and served in that position from 1995 through 2008. His newest book co-authored with Tim O'Brien, "If You Have Employees, You Really Need This Book," is a bestseller on Amazon.com. He can be reached by e-mail at jerry.osteryoung@gmail.com.

Tags: Florida Small Business

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