Coping with a company disaster

Fire, flood and accidents all threaten businesses

The key to coping with an unexpected event as a small business owner is to have a disaster recovery plan in place beforehand.

This should consider the types of potential disasters which the business could face and outline recommended action to be taken immediately after the crisis occurs.

The safety of staff and customers must always be a priority in the event of a disaster.

For example, if work premises are under threat from fire, staff and any on-site customers must be evacuated to a safe location as quickly as possible.

Procedures must be in place for such evacuations to work smoothly.

When any form of disaster occurs it is vital that the company maintains effective communication with all interested groups.

This may require the establishment of telephone helplines or the mass mailing of letters of explanation.

Job security

Different interest groups will have different concerns. For example, if staff jobs are under threat, the company will need to explain the extent of the problem to employees, either allaying false fears or giving a fair perspective of the numbers likely to be affected.

PEOPLE WHO NEED TO KNOW Staff and their families Suppliers Shareholders If appropriate, contact individual customers

Similarly, shareholders will want to assess the impact of the disaster on the company.

It is essential that the company explains what steps it is taking to mitigate the impact on the business, its financial results and its trading future.

If the disaster impacts on products and services, the company will need to respond quickly to customer concerns.

It is also worth bearing in mind that product recalls will create unexpected demand for storage space.

They will also place an added strain on the administrative resources involved in replacing orders or issuing refunds.