Disaster planning advice for small business retailers

here at our small business POS software company y we gratefully engage with our customers to help them understand and plan for disaster scenarios. Here is advice we have shared with our customers:

How protected is your retail business in the event of disaster? Since we are a software company, our interest is more to do with data and technology.

Are you as protected as you can be?

This is an easy topic to ignore and most small business retailers do. Those most likely to plan for a disaster are those who have gone through it. Once bitten, twice shyas they say.

Insurance. Insurance coverage is vital to helping overcome any type of disaster.  In addition to ensuring that your insurance policy covers all disaster situations of concern to you, including flood, theft, water inundation, fire, earthquake, riot—be sure to carefully read the policy, ensure that your insurance policy / policies cover payouts for the following:

1. ‪Business interruption. The amount should equal your anticipated gross profit for whatever period you choose to be covered.
2. Data recovery. Including the hiring of experts to recover data from backup sources or the manual entry of data that cannot be automatically recovered.  Ensure you are covered to the point of recovered data being useable.
3. Lost stock. This is stock stolen, lost from the business.
4. Damaged and unsaleable stock. This is stock which is water damaged, scuffed or dented and which will not attract full price.
5. Dated stock. This is stock that you cannot sell by the due date.
6. Many policies require explicit statement of glass coverage.
7. Temporary trading premises. Business interruption may cover this.
8. Key person injury and/or death.This will usually be a separate policy.  Depending on the disaster, coverage may also be available through the overall business policy.

Ensure that the value of stock, fixtures and fittings covered by your policy is an accurate reflection of the real value of these items.  Use your POS system to track all stock movements in and out.  The stock on hand in your software should be your coverage.

Ensure that your insurance policy protects for the seasonal nature of your business

Data Protection. Business data is a valuable asset. Follow these steps:

1. ‪Backup your business data every day, at the end of the day, without fail.
   1. Better still: use a cloud based backup service that undertakes the backup as the day unfolds without you having to every do anything to backup.
2. Maintain a separate backup for each day of the week.
3. Remove the backup from the business property.
4. Store the backup in a safe, dry place.
5. Check the usefulness of the backup by restoring and checking the data.
6. Store original business software in a safe off-site location.
7. Check the backup every three to six months – to make sure the backup is actually backing us current data and can be read. A backup you cannot read is a waste of time and money.
8. Change your passwords regularly.
9. Do not share passwords widely.

Disaster Planning. Here are some general suggestions on planning for a disaster in your business property.

1. Ensure your roof is secure and free of leak points.
2. Do not place computers on the floor. Put them on a riser.
3. Use a power filter.
4. Ensure all electrical wiring is to code.
5. Keep off-site copies of: Business contracts and agreements; employee contact details, business account and other passwords, insurance details, recent photographs of fixtures, fittings and stock.
6. For records you cannot easily copy or that may change as the trading day unfurls, consider having a go bag ready for you to grab if there is a risk to the premises such as a bushfire.
7. Maintain a register of all employees in the business premises at any time.
8. Prepare and place in a prominent place an evacuation plan.
9. Maintain a professional grade OH&S compliant first aid kit.Have this checked regularly.
10. Regularly maintain all fire extinguishers – check with your local fire brigade about this.
11. Ensure that the business premises is safe and maintained to the local building codes and OH&S regulations.
12. Have a trained first aid officer in staff. Your local St Johns or similar will be able to provide training.
13. Use government resources such as the emergency planning kit at the federal government website: http://www.business.gov.au/business-topics/templates-and-downloads/emergency-management-template-and-guide/Pages/default.aspx