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A Plan In Time
Natural disasters and civil unrest are a potent one-two punch. Do you have a plan to deal with each?
By Michael D. Faw
While now in the history books, 2020 was a rough business year because of public health concerns, forced business closings, and a wide range of natural disasters. An estimated 25 percent of businesses that closed in 2020 did not—or have not—reopened. And 2021 wasn’t much better, as Covid’s Delta and Omicron variants and Hurricane Ida, among other concerns, kept the heat on business owners. Disasters such as floods, earthquakes, wildfires, tornadoes, and hurricanes will shutter any business. Civil unrest, in the form of riots and arson, can also wreak the same havoc.
Given all these, it makes sense for retailers to prepare now for a large-scale emergency. If you fail to take the time to perform inventory, make detailed evacuation and re-opening plans, and take steps to secure valuables and business survival information, you could be faced with a very big loss, possibly losing everything you have worked a lifetime to achieve. So, have you made emergency and disaster plans? Furthermore, are you prepared to execute them in an emergency?
First Steps
A good first step to be better prepared to survive an emergency includes making a quick checklist of things that must be done. Now is the time to speak with your insurer about coverage and your closing—and re-opening—plans. As the storm or disaster approaches, heed the warnings from weather sources. No inventory is worth your life or those of your employees; get out before the storm arrives. With all must-evacuate emergencies, plan at least two evacuation routes. If time allows, cancel incoming deliveries and let outside-the-region vendors know that you could be closed for a period of time.
If a flood is forecast, take time to install plugs in the sewer and other water outlets to prevent internal flooding and backups. Unplug all electronics and move the necessary ones to a high point in the building. You also might want to consider taking phones, chargers, computers, and back-up devices, along with cash registers, to a safe off-site area. Water and electronics don’t mix.
Take the time now to record what you have in your business before you leave. That includes assets, inventory, investments, upgrades, warehouse supplies, and the overall physical structures. Be prepared to show proof you had inventory. Banks, law-enforcement entities, BATF, creditors, insurers, and a wide range of business recovery concerns won’t just take your word for it. An inventory list and photos (or detailed videos) of inventory are a solid starting point. Here, an image of closed safes won’t cut it. You need proof that the safes actually held the firearms (and any other valuable items) you say they did. Do an aisle-by-aisle and counter-by-counter photograph session or video recording and take notes about what is seen in those photos.
Small things add up to big bucks in the recovery balance sheet, so cover everything in detail. Include specific details, such as the model and date purchased, when possible. While taking photographs or videos, also cover the storage areas, restrooms, building exterior and roof, and parking lots. These could be forever altered by natural disasters or civic unrest (read arson). You should also make copies annually of phone, electric, garbage, cleaning service, and other regular bills—and the sources of those—along with contact information for those concerns.
Another first-level step in recovery is also letting your employees know what is happening—and what will be happening in the days and weeks ahead. Create a phone tree complete with employee addresses, phone numbers, and emergency contacts for those employees. Don’t rely on your cell phone as the sole source for those details, but do make lists and store those on- and off-site in places such as your home vault or a bank vault.
Take routine steps and train employees to run generators, pumps, and operate fire extinguishers or any fire-suppression systems you may have. There’s always the chance disaster could arrive when you are away from the business.
After disaster strikes, the entire community feels the pain. As you try to reconstruct your life and livelihood, consider the community at large. Any help you can offer to others in need will be greatly appreciated, and the goodwill you will earn will reward you in the future. Besides, such help is simply the right thing to do. It’s the American way.
Recovery Plans
Each disaster and emergency is different, and the short-term and long-term impacts are always vastly different. Make thorough lists in a notebook (you may not have power to access your computer’s Excel file) of what needs to be done to reopen. A good timeline for getting organized is: “Today, This Week, This Month.” The period following an emergency or disaster is a time of great turmoil and stress. You and your employees will be in shock and on edge. A written guide will help you and your staff more efficiently organize the recovery efforts.
Since phones, electric service, or water will most likely not be immediately available, having potable water, food supplies, and medical-aid kits on site is a good idea. You also might want to have a cot and sleeping bag on hand, in case you need to sleep in the store. A chainsaw, ropes, and other gas-operated or non-electric hand tools can also help greatly with disaster recovery. Flashlights, batteries, lanterns, a radio, a propane camp stove, as well as pots and pans for boiling water and meal preparations, and other items along this survival line can help you be prepared until services are restored—or if you must shelter in place for a period of time. Store these survival essentials in waterproof containers on site or in a location where they are accessible immediately after a disaster, such as your home’s garage.
A full recovery plan also includes being prepared for security—for yourself, your family and employees, and your business. Looting is an unfortunate by-product of natural disasters and civic unrest. Consult a lawyer to fully understand the applicable laws in your area regarding use of firearms to protect life and property.
“We’re Open!”
The next challenge period following any disaster is reopening. It could take weeks until power lines are repaired and electric services are restored to your location, but once you can safely open and function as a business, begin the recovery process. Reach out to friends, family, and customers to let them know you are open for business. Be prepared to do a cash-only opening in the first few days.
Most likely, your customers will still be in shock as they assess the damage to their lives and property. If you raise prices to take advantage of others, you will get a short-term gain with long-term consequences. If you help customers in their recovery efforts, they will remember you in a positive way.
Once traffic begins passing by your location, place an “open-for-business” banner outside. Social media channels can also help you let your customer base know you are open. Your website can also let customers browse your inventory online.
Natural disasters, forced government shutdowns, and civic unrest are unfortunately a new norm in many areas. Take the steps now to help ensure your continued livelihood in the aftermath.
An increase in natural disasters makes being prepared for a large-scale emergency a new normal operating procedure for you.
In the case of a complete loss, a thorough store inventory can help ease working with an insurance company.
Be prepared to show proof you had inventory. Creditors, insurers, and other business recovery concerns won’t just take your word for it.
Wildfires can move very quickly. Have an evacuation route mapped out before the fire begins.