How to Prevent a Business Disaster

It's not a matter of *IF* ... it's only a matter of *WHEN* you and your business will be affected by a natural or manmade disaster. Chances are greater today than ever before your normal business operations will be interrupted by an equipment failure, operator error, power outage or other calamity or disaster. Planning and preparation BEFORE disaster strikes is the best way to ensure your business will survive! Here are ten steps you can take to protect your business:

1. Create a virtual disaster team within your company.

A virtual disaster team is the best way to gather information and perspective which is essential in preparing an effective disaster prevention and recovery plan. Proper disaster planning requires information from all perspectives of your company as well as outside sources. Sole proprietors, coaches, and consultants should seek help from friends and associates in viewing their business operations from all perspectives.

2. Conduct a complete asset inventory.

Be sure to include all equipment, furnishings, supplies and inventory. Then augment your written inventory with still photos and/or videotape of all areas.

3. Protect your equipment.

Move mission-critical equipment away from doors and windows where they can be damaged by debris, wind or water during a storm. Protect major industrial or production equipment, office machines, computers, peripherals and accessories from dust, dirt, debris, moisture and power fluctuations. Install surge suppressors and uninterruptible power sources. Use equipment covers to protect from water leaks from overhead pipes and facilities. And move equipment, documents, supplies and inventory out of basements and other areas of your facility subject to flooding.

4. Protect your vital records.

Identify records that are vital to your business operation. Store copies of these records off-site. Implement a records management program and standard office procedures for handling electronic files and paper documents. Establish and enforce a computer data backup system.

5. Establish off-site storage and alternate location policies.

Develop a policy for storing original documents, vital records and critical electronic files off-site. Establish an alternate or emergency location from which you can perform the critical functions of your business should you be unable to access your business facility. If you have others on your staff, make sure they understand these policies and their individual responsibilities during and after a disaster situation.

6. Develop, test and revise your disaster plan.

Once you have developed what appears to be a good plan for limiting the effects of a disaster or business interruption, you must test the plan to ensure it meets your needs and expectations. Keep accurate and detailed notes through all phases of plan testing. Revise your plan based on your test results and notes; then test your revised plan.

7. Seek legal counsel on contracts and agreements.

Entering into any type of agreement, contract, lease, proposal or signing any document you have not read or you do not fully understand is an open invitation to business disaster. Don't try to "Go it alone!"

8. Review insurance needs and documents.

Meet with your insurance agent, consultant or advisor and determine your insurance needs. Go over your policy statements and make sure you understand types of coverage, coverage limits, exclusions and deductible amounts.

9. Prepare yourself and your staff for business interruptions and disasters.

Large or small... natural or manmade... whether it strikes you directly or a business you depend on... you should be prepared BEFORE a disaster or business interruption occurs. Your business disaster plan will not be effective unless you know and understand your needs and responsibilities when a disaster or business interruption affects your business. Arrange first aid and CPR classes through local emergency officials. Develop and maintain off-site. storage policies, office operating procedures and computer backup schedules and procedures. When you read about a disaster affecting other businesses, review your disaster plan and make sure it covers such an event.

10. Prepare your workplace for disaster.

Collect and remove trash, rubbish and debris inside and outside your facility. Clean your roof, gutters, downspouts and drainage ditches. Perform a physical inspection of your business and look for potential security, fire and electrical wiring hazards. Develop an orderly evacuation procedure which takes into account any persons with disabilities. Also establish a primary and a secondary evacuation route from your facility.

Is This the Time to Make a Radical Change in Your Business?

Certain business realities signal us that we should make a change if we are to survive. Herewith, a list of some of those signals.

1. You find more and more competitors in your market.
An indication that it's a good market, but being fractioned. Unless what you offer is both different and better, look for another niche.

2. Your market disappears.
OK, you make the world's best buggy whips! Wake up.

3. Your interests and values are out of sync with your business.
A formula for business disaster and personal misery. Revisit your vision and mission--and align them with your values. Now start again.

4. Your customers are leaving for your competition.
Either figure out why and fix it or find another business.

5. You dread going to work in the morning.
Figure out why. If it can't be changed, do something else.

6. You notice your competitors changing.
Have you noticed that, like it or not, it's a race? Do what it takes to win or join another race.

7. Working on the business is taking more time than working in the business.
If your revenue can't support more help, find a way to simplify and streamline your business (your competitors probably are).

8. You're losing key employees to your competitors.
A sure sign of "trouble in River City!" Conduct "exit interviews" with departing employees--figure out what the competition's got that you don't.

9. Your business no longer supports your lifestyle.
Well, change either one or the other until they're in sync.

10. You're neither learning nor having fun anymore.
Certain death if you stick it out. Time for a fresh start.

Why do some Business managers hit the profit goal more frequently than others? They do it because they keep their performance
pointed in that direction - management of profit earning. They never lose sight of the goal - to finish the year with a gain.

This manual Gives suggestions that should enable an owner-manager to zero in on profit earning. It points out that you must keep
informed, make timely decisions, and take effective action. In effect you must control the actions of your organization rather
than being controlled by them.

Topnotch Functionality in golf, shootingfishing demands understanding, practice, and perseverance.

Similarly, in Small businesses, year-end profit comes to the owner-manager who strives for topnotch performance. You achieve
profit making goals by understanding your performance, by practicing the craft of earning timely, balanced judgments and by
controlling the company's actions.

Adapt the Suggestions in this guide to your situation. They ought to allow you to predict the shots to keep your company headed in
the ideal direction - toward profit earning.

First Rule of Profit Making: Know Your Business. The Time-honored truth"Knowledge is power" is particularly pertinent to this
owner-manager of a small business. To maintain your company pointed toward gain you need to keep yourself well informed about it.
You have to know how the company is doing before you may improve its operation. You have to understand its weak points until you
can correct them. A number of the information you require you pick up from daily personal observation, but documents should be
your main source of information about profits, expenses, and earnings.

Know Your Profit. The profit and loss statement (or income Announcement ) prepared regularly each month or every quarter by your
accountant is among the most vital indicators of your business's value and wellbeing. You need to be certain that this
announcement contains all of the details you need for evaluating your gain. This statement must pinpoint each revenue and price
area. By way of example, it should demonstrate the profit and loss for all your products and product lines as well as the gain and
loss for your whole operation.

It is a good Thought to have your own profit and loss statement prepared that it shows every single item for the current interval,
for the identical period this past year, and for the current year-to-date. By way of example, a P&L statement for the month of
November would show income and expenses for the current month, for November last year, and prices for the eleven months of this
current year. Many corporations publish their annual reports with a few previous decades so stockholders can compare earnings.

Comparison is The trick to using your P&L announcement. If your accountant isn't already supplying figures that you can compare,
you need to discuss the possibility of having them provided.

Financial Ratios out of the balance sheet also allow you to understand if your gain is exactly what it ought to be. As an example,
the proportion of net worth (return on investment ratio) shows what the business brought on the equity capital invested.

Know Your Costs. An owner-manager ought to understand costs in detail. Then, you can compare your price figures as a percentage of
sales (operating ratio). Be sure your prices are itemized so that you can put your fingers on those that appear to be climbing or
decreasing according to your expertise and the cost figures of your own industry. When prices are itemized, you can spot the
culprit once the general figure is greater than what you had budgeted. Take advertising costs such as. You can catch the offender
should you split out your advertising expenditures by product lines and by media. In addition, a thorough check of question yields
from advertising will help avoid unsuccessful publications.

In understanding your Costs, remember that the formula for gain is: Gain equals Sales minus Costs.

Know Your Product Markup. Be certain The pricing of your goods provides a markup adequate for the kind of profit you expect to
achieve. You must keep constantly informed on pricing since you need to adjust for rising costs and at the same time keep prices
competitive. Knowledge about your markup also can help you to run workouts with your eyes open. Continuing to generate something
which only a few customers desire is a powerful merchandising tool just once you use it on goal - for instance, to hold or attract
buyers to other high markup products. Do not hesitate to shed a loser from your line.

Garbage-In, Garbage-Out. An Owner-manager shouldn't fudge the records. The acronym GIGO the computer business uses is true with
manually kept records in addition to with machine-processed ones. If an owner-manager lets"garbage" to enter the records, the
reports will include"garbage." Reports need not be extensive but they need to be accurate.

Search For Trends. Try not to look at one month's sales or Profit image alone. The characters on your operating statements are
meaningful only when you put the image in the right frame - which is, take a look in the figures from the context of what has
happened and what is likely to happen. In that manner, you catch a downward trend before it gets out of hand.

You should also Concern yourself with the figures behind the bucks - for instance, the amount Of units sold or the number of
orders. Insist on cost-per-unit figures. The Fluctuation of the cost-per-unit can be more meaningful than simply looking At the
dollar figures . Another idea would be to exhibit these comparative Figures on charts so that important trends can be seen easily.

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