When disaster strikes, anyone can easily get blindsided. All too many companies get lulled into a sense of complacency when things are going well and they come to think a disaster just won’t happen to them. Many businesses, however, were profoundly affected by Hurricane Isaac’s recent wrath. Closed and ruined roads, downed power lines, flooding, rivers and embankments in disrepair and property damage from wind and looting had devastating effects.
As a result of Hurricane Isaac’s damage, even the most savvy companies will inevitably experience a productivity slowdown and financial setbacks. Businesses may be playing catch up for a year or more as they deal with the devastating effects of the storm. As disaster recovery unfolds, businesses should keep in mind it’s never too early to prepare for the next possible emergency to ensure their company’s stability and safety even if the unthinkable happens. Here are five ways to offset costs and compensate for a recent disaster, as well as lay the groundwork of preparedness for future events.
1. Have a data backup and recovery plan
These days, data is a business’ most precious resource. With so many tasks being done via computers and so much data housed on hard drives and servers, a disaster striking one or more of your databases can have devastating effects on a business in both the short and long term. Consider a data backup service via the cloud, where data is stored remotely while still offering full access to important files.
2. Invest in business insurance
Consider a business interruption insurance policy in addition to a standard business property policy. This way, a business will be covered in the event of physical damage to a building or business property. Other unforeseen sources of interruption to the normal operations of the business, such as having to cease production for a prescribed amount of time may also be included with this type of coverage.
3. Employ a smarter, more efficient distribution system
A fuel management system and GPS tracking capabilities can help keep a business’ fuel costs lower year round, easing the blow of a disaster and helping a company get back up to speed more quickly in its wake. Fuel management can lower fuel costs by helping companies become aware of waste and inefficiency in their business fuel usage, including unsafe or inefficient driving routes and practices. GPS tracking will assist in calculating new routes around roads with water damage and currently in-navigable areas. With awareness, businesses can raise their efficiency, which also raises profit margins.
4. Use free preparedness resources
Organizations like the U.S. Small Business Administration, Agility Recovery Solutions Prepare My Business and the American Red Cross all offer free resources to help businesses and organizations to assess and improve their level of preparedness for emergencies. Take advantage of the information and implement changes leisurely instead of in a panic.
5. Know your Plan B with partners and suppliers
If a business relies heavily on just a few suppliers, it’s paramount to know what to do if disaster strikes. Having a Plan B for every supplier is a wise practice for offsetting the effects of a disaster. Have a second and even third supplier’s name ready and be sure to keep current all Plan B options. Consider as well a contingent business interruption policy, which will cover interruptions that are a direct result of a key supplier being affected by a disaster.
These are just some of the ways to repriortize a business model to offset the effects of an emergency like Hurricane Isaac. A company should always be ahead of the game in the event the unthinkable happens. It has been said luck favors those who are prepared; a business should do all it can to avoid the fallout that emergencies and natural disasters can bring.