What is an Emergency Readiness Plan and why it is important for your Small Business?
Updated: Feb 2, 2022
You might be familiar with an emergency plan whether it's the Federal Emergency Management Agency (FEMA), healthcare coined Higher Emergency Incident Command System (HEICS) or your own family emergency evaluation plan. Well, as a small business owner, an emergency readiness plan needs to be in place.
In business, what is an emergency? Simply put an emergency is any internal or external event that may disrupt your business. For example, COVID was an external emergency for many businesses. Likewise, the sudden departure of a key member of your team is an internal emergency. Point is, if you do not have an emergency plan for your business, the unexpected can create huge financial loss. An emergency plan allows you and your team to carefully plan for the unexpected.
What items should be part on emergency plan.
Risk assessment must include internal and external threats Identify in your line of business what can affect your business. You can start with your basic SWOT analysis.
Identify the various insurance you need for your business and invest in the best business insurance to safeguard our property rights
Invest in Human Capital. Ensure you have a team with diverse skill sets. In 21st century each executive should have multiple strengths and skill sets. Identify the strengths of your executives and weaknesses based on your organization's mission and vision. Strengths need to be maximized and weaknesses need to r eliminated. This can be as simple as training your team.
Implement a staffing plan by titles. A staffing plan will indicate who in charge in the event, the CEO is not available including other Executives. This also signify the replaced personnel must be trained and familiar with the roles of the Executives. This should be shared and reviewed annually.
Take an inventory of your products, vendors and anyone else who can assist you in your comeback. This means names and phone numbers.
Have contingency funds on reserve to mitigate damage and disruption.
Incorporate an emergency readiness policy and procedure summarizing the above, sign, date, and ensure members of your team are aware of the process.
If COVID taught small businesses anything is to expect the unexpected. Contact CPR, LLC today to schedule a free 1 on 1 to address your emergency plan.