Did you know 40% of businesses that encounter a disaster or emergency close permanently after? That’s why emergency planning and disaster preparation is key to the success of business in the aftermath.

Disasters and other emergency events can cause damage, delays, and interruptions to your business, leading to potentially devastating financial losses. Here are some things you should know to protect your business and prepare for the future.

What’s the difference between disaster preparedness and continuity planning?

Disaster preparedness and business continuity planning (BCP) are proactive strategies used to address the possibility of business disruption due to unforeseen circumstances. They often are more encompassing plans concentrating on keeping the business running during a disaster and may include some disaster recovery steps to mitigate things like systems being down and limited technology access.

Four steps for creating a Business Continuity Plan.

1. Assessment: The first step is to assess potential risks in your business. This includes identifying natural and other disasters you are most likely to face including:

• Floods
• Tornadoes
• Fires
• Cyberattacks
• Acts of Terrorism
• Civil Unrest
• Pandemics

Then, understand what parts of your business are most vulnerable to these events, such as your physical buildings, technology, supply chains, or staffing. Finally, analyze the potential impact on your finances, operations, assets, customer satisfaction, and employee safety.

2. Create a plan: Once you understand the potential risks, you can create your BCP. This process should be a team effort with a high-level leader to execute the plan. Ideally, your plan should include feedback from various representatives, including IT, human resources, facilities, customer service, finance, compliance, and legal.

You should ask each representative to gather any critical documents or information and present the potential risks to their department. If you have a small business where you, as the owner, wear most of these hats or employees share multiple roles, it’s important to create a plan with each perspective in mind to identify all vulnerabilities and solutions.

From there, you should review risk assessment and create steps with assigned roles to address each potential disruption to the business. Ready.gov provides toolkits with step-by-step guides for specific hazards such as tornadoes and power outages. Some of the steps in your plan should include:

• Backup records and data – Establish protocols for secure data backup.
• Evacuation and contingency plans – Create clear evacuation routes and procedures; this can include setting up alarms, PA systems, and text alerts for evacuation orders. You’ll also want to write contingency policies for remote or in-office work if there is damage to your facilities. 
• Special handling instructions – Secure and document protocols for dangerous materials.
• Communication systems – Creating communication protocols for stakeholders, including vendors and customers if/when normal communication systems are down. 
• Staff contact information – Collect and maintain up-to-date emergency contact details.
• Emergency supplies – Stock essential supplies and ensure easy access.
• Inventory management – Maintain an up-to-date inventory of assets for claims and relief.
• Insurance and mitigation review – Ensure policies cover disaster-related damage and losses. Invest in mitigation tools and processes to help protect against things like fire, flood and high winds if relevant. 
• Financial preparedness – Build up sufficient financial reserves and understand requirements for disaster-related financial assistance. For instance, FirstBank offers business lines of credit that can support cash flow for unforeseen financial issues due to loss or disaster.

3. Implementation: When completed, inform all company employees of the BCP with a well-organized communication strategy. You should also provide training for the staff members responsible for carrying out the plan. Conducting test runs will ensure your plan effectively addresses all likely issues and everyone involved understands how to carry out their roles.

4. Review and update: It’s important to review the plan at least once a year and update it to ensure all steps are still relevant and effective. This process is an opportunity for continued improvement and feedback. Any significant changes to the business, such as new locations, employee roles, or technology, should be added. When any changes are made, you should also document them with the names and titles of who was involved and a revision date.

Don’t wait for the next disaster to strike. Now is the time to prioritize creating a business continuity plan so your company can mitigate risk and recover quickly in the event of a disaster. For more ways to grow and protect your business, visit our Business Success page at efirstbankblog.com.

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Published: March 6, 2025