• Ready Business Mentoring Guide

Ready Business
Mentoring Guide
Working With Small Businesses
to Prepare for Emergencies
USER EDITION
Homeland
Security
www.ready.gov
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 Ready Business, an extension of the U.S. Department of Homeland Security’s Ready campaign, helps owners and
managers of small to medium-sized businesses prepare their employees, operations and assets in the event of an
emergency. Launched September 2004, Ready Business is funded by Homeland Security’s Office of Infrastructure
Protection. This Ready Business Mentoring Guide was made possible with support from the Federal Emergency
Management Agency (FEMA). For more information on individual and business preparedness visit www.ready.gov.
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 Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
How to Use This Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Sample Business Continuity and Disaster Preparedness Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Continuity of Operations Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Emergency Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Be Informed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Emergency Planning Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Evacuation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Shelter-in-Place Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Emergency Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Cyber Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Promote Preparedness and Support Employee Health. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Annual Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Protect Your Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Resource Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Appendix — Sample Emergency Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
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 READY BUSINESS
MENTORING GUIDE — USER EDITION
Working With Small Businesses to Prepare for Emergencies
Introduction
Scenes of disaster replay on televisions
across the country with numbing regularity: A
hurricane blasts through Florida ... fire sweeps
through a small-town manufacturing plant...
floods destroy a local business district... a
winter storm causes widespread power failure
in the Northeast.
Every year emergencies take their toll on
business and industry in terms of lives
and dollars. But something can be done.
Businesses of all sizes can limit injury and
damage and return more quickly to normal
operations if they plan ahead. Preparedness
works.
The Ready Business Mentoring Guide: User Edition is designed to help small business owners and
managers take action to reduce the impact of natural or man-made disasters. The Ready Business
content reflects the Emergency Preparedness and Business Continuity Standard (NFPA 1600)
developed by the National Fire Protection Association and endorsed by the American National
Standards Institute, the 9/11 Commission and the U.S. Department of Homeland Security.
Thank you for your part in preparing the business community for disasters and emergencies. Your
participation in this important effort will contribute to the safety of your friends and colleagues, as
well as protect the local business community.
Why Develop an Emergency Plan?
Business owners invest a tremendous amount of time, money and resources to make their ventures
successful, so it would seem natural for owners to take steps to protect those investments.
While the importance of emergency planning may seem self-evident, the urgency of the task is
often blunted by the immediate demands of the workplace. Also, owners and managers may have
only a nominal idea of the risks their business faces, or possess only a limited understanding of
steps they can take to reduce the potential impacts of disasters.
Last but not least, the business person is prone to the all-too-human tendency to believe that “it
won’t happen to me.” In the meantime, businesses will continue to suffer setbacks that often could
have been reduced or prevented altogether had someone taken the time to plan.
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 We all recognize that disaster can strike anywhere, at any time.
Consider the following:
O An estimated 25 percent of businesses do not reopen following a major disaster, according to
the Institute for Business and Home Safety.
O The number of declared major disasters more than doubled in the 1990s.
O A business can be hurt indirectly when disaster strikes customers or another business, such
as a supplier or distributor.
O OSHA requires that most businesses with 10 or more employees have a written emergency
plan.
O The realities of a post-9/11 world and an increasing dependency on computer technology call
for additional protection of business operations.
O The 9/11 Commission emphasized the critical importance of preparedness in protectecting
business assets and safeguarding employees’ lives.
“Private sector preparedness is not a luxury; it is a cost of doing business in the post 9/11
world. It is ignored at a tremendous potential cost in lives, money, and national security.”
— 9/11 Commission Final Report, Chapter 12
It Pays to be Prepared
Sometimes, when convincing people of the need for emergency preparedness, too much emphasis
is placed on dramatic, worst-case scenarios — as if these were the only possible disasters that might
occur.
At the same time, the more positive aspects of everyday preparedness are overlooked. Consider these
practical benefits that can strengthen a business regardless of where it is located or what level of risk it
may face:
O Preparedness enhances a company's ability to recover from financial losses, loss of market
share, damages to equipment or products, and business interruption.
O Preparedness facilitates compliance with regulatory safety requirements of federal, state and
local agencies.
O Preparedness helps companies fulfill their responsibility to protect employees, the community
and the environment.
O Preparedness bolsters a company's security and enhances its credibility with employees,
customers, suppliers and the community.
O Preparedness steps taken by business owners and operators may help reduce insurance
costs.
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 How to Use This Guide
The Ready Business Mentoring Guide: User Edition
is designed to serve as a companion to the Ready
Business Mentoring Guide. The User Edition contains
all supplemental materials — worksheets, checklists,
testimonials and information pages — that are found in
the Ready Business Mentoring Guide. Both are based
upon the U.S. Department of Homeland Security’s Ready
Business Web site (www.ready.gov).
Although the User Edition is designed as a workbook
to be used as part of a formal, interpersonal business
mentoring session, the User Edition may also serve as a
self-study guide, using the information contained in the
Ready Business Web site as a reference.
You will find a Sample Emergency Plan included in
the appendix to this guide. As you work to complete
the Sample Emergency Plan, use the worksheets and
supplemental materials provided to assist you in this
process.
O Helpful “talking points” ( ) will summarize the main message for each topic.
O “Yes or No?” questions drawn from the “Every Business Should Have a Plan” brochure, a
DHS publication available on the Ready Business Web site, will direct you to key elements
of the plan. The brochure may be downloaded from Ready Business at www.ready.gov
O Where applicable, worksheets will follow each topic. Use the worksheets to help you take
the all-important step of applying pencil to paper to create your plan.
O Supplemental hand-outs and a list of resources will provide direction for future activity. Add
your own materials to the resources cited at the end of this mentoring guide, if applicable.
O The guide concludes with a final section, “Protect Your Investment,” which offers additional
steps for you to take in support and furtherance of your emergency plan.
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 Getting Started
Objectives
O Obtain a basic overview of the steps necessary to prepare your business for emergencies.
O Begin developing a plan, using the Sample Emergency Plan provided in the appendix of
this guide.
O Consider suggested activities, planning resources and informational materials that will help
you take future action.
Talking Points
How quickly you can get back to business after a terrorist attack or tornado, a fire or flood,
depends on emergency planning done today.
 Although each situation is unique, any organization can be better prepared if it plans
carefully, puts emergency procedures in place, and reviews and practices for all kinds of
emergencies.
Business preparedness can be complex, depending on the particular industry, size and
scope of operations. But putting a plan in motion will improve the likelihood that your
company will survive and recover.
Companies that already have their emergency plans in place can continue to help create
a safer, stronger community and business environment by encouraging their employees to
prepare at home and by mentoring other businesses in their supply chain.
It is estimated that more than 85 percent of the nation’s critical infrastructure is owned and
operated by the private sector.
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 GETTING STARTED
Worksheet: What are the Costs?
Q Use this list as a quick gauge of your current level of preparedness. As you run down the
list, ask how many commonsense precautions your business has already implemented.
Q Remember that some recommendations can be followed at little or no cost. Other steps
may require an investment.
Many of these same items will be included in your emergency plan.
Free
Meet with your insurance provider to review current coverage.
O Create procedures to quickly evacuate and shelter-in-place. Practice the plans.
O Talk to your people about the company’s disaster plans. Two-way communication is central
before, during and after a disaster.
O Create an emergency contact list including employee emergency contact information.
O Create a list of critical business contractors and others whom you will use in an emergency.
O Know what kinds of emergencies might affect your company both internally and externally.
O Decide in advance what you will do if your building is unusable.
O Create a list of inventory and equipment, including computer hardware, software and
peripherals, for insurance purposes.
O Talk to utility service providers about potential alternatives and identify back-up options.
O Promote family and individual preparedness among your co-workers. Include emergency
preparedness information during staff meetings, in newsletters, on company intranet, in
periodic employee e-mails and through other internal communications tools.
Less than $500
O Buy a fire extinguisher and smoke alarm.
O Decide which emergency supplies the company can feasibly provide, if any, and talk
to your co-workers about what supplies individuals might want to consider keeping in a
personal and portable supply kit.
O Set up a telephone call tree, password-protected page on the company Web site, e-mail
alert or call-in voice recording to communicate with employees in an emergency.
O Provide first aid and CPR training to key co-workers.
O Use and keep up-to-date computer anti-virus software and firewalls.
O Attach equipment and cabinets to walls or other stable equipment. Place heavy or
breakable objects on low shelves.
O Elevate valuable inventory and electric machinery off the floor in case of flooding.
O If applicable, make sure your building’s HVAC system is working properly and is well-
maintained.
O Backup your records and critical data. Keep a copy off-site.
continued on next page
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 GETTING STARTED Worksheet continued
More than $500
O Consider additional insurance such as business interruption, flood or earthquake.
O Purchase, install and pre-wire a generator to the building’s essential electrical circuits.
Provide for other utility alternatives and back-up options.
O Install automatic sprinkler systems, fire hoses and fire-resistant doors and walls.
O Make sure your building meets standards and codes. Consider using a professional
engineer to evaluate the wind, fire or seismic resistance of your building.
O Consider using a security professional to evaluate and/or create your disaster preparedness
and business continuity plan.
O Upgrade your building’s HVAC system to secure outdoor air intakes and increase filter
efficiency.
O Send safety and key emergency response employees to trainings or conferences.
O Provide a large group of employees with first aid and CPR training.
Take Away
“Every Business Should Have a Plan” brochure is available for
download from the Ready Business Web site.
O This brochure outlines the information contained on the
Ready Business Web site.
O Ready Business presents a three-step plan for business
emergency planners: “Plan to Stay in Business,” Talk to
Your People” and “Protect Your Investment.”
O The brochure may be downloaded from Ready Business at
www.ready.gov
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 Sample Business Continuity
and Disaster Preparedness Plan
Supplemental material for this section:
Sample Emergency Plan
Available for download at www.ready.gov
O Try to keep the plan as simple as possible so that it can be remembered and followed in
an emergency.
O The goal is to fill in as much of the plan as possible. It is okay to “pencil in” answers. What
is important is to start thinking about preparedness and move forward in the process of
developing a plan.
Q Parts of the plan will likely be easy to fill in on the spot, since the information
requested is data that would be “top of mind” for a business owner.
Example: Designating a primary crisis manager and a back-up manager.
Q Other parts may be partially answered, requiring follow-up in order to complete.
Example: Compiling a list of suppliers and back-up contractors.
Q Others may require more deliberate planning that would take place over a period
of time.
Example: Developing and implementing a shelter-in-place plan.
O The Sample Emergency Plan is a template. It provides a basic framework that may require
tailoring and customizing to fit your business’s specific needs.
Q Your company’s actual plan may require that entries made today be expanded
afterwards.
Example: Your company’s communication plan, once it is developed, may
require more than the two lines provided in the Sample Emergency Plan.
O Approach the Sample Emergency Plan step-by-step. Each boldface item in the plan
relates to a topic that is addressed in greater detail on the Ready Business Web site.
Example: While the Sample Emergency Plan provides three lines for
cyber security planning, cyber security is more fully discussed on the Web
site, and includes links to other cyber-security sites.
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 Sample Emergency Plan
Page 1 — Plan to Stay in Business
Page 2 — Our Critical Operations
Page 3 — Suppliers and Contractors
Page 6 — Records Backup
Supplemental material for this section:
Worksheet: Continuity of Operations Planning
Information Sheet: Prepare for Utility Disruptions
Page 1 Page 2
Plan to Stay
in Business
Our Critical
Operations
Page 3 Page 6
Suppliers and
Contractors
Records Backup
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 Continuity of operations planning (sometimes referred to as “COOP”) involves looking at CONTINUITY OF
your business from inside and out to determine the people, resources and procedures that OPERATIONS
PLANNING
are absolutely essential to keep your operation running.
You should explore “what-if” scenarios, such as what to do if your place of business is
not accessible, if a major supplier is shut down, if emergency financial decisions must be
made, or if another person in the line of succession must assume management of the
company. At the same time, taking a broad, commonsense approach will help manage
emergencies that cannot be anticipated.
Four parts of the Sample Emergency Plan ask for information that corresponds to the
Ready Business Web site’s discussion of business continuity.
Additional information is available in the “Protect Your Investment” section at the end of the
guide in support and furtherance of your emergency plan.
Yes or No?
Y N
 T T Have you identified the employee procedures that are absolutely necessary to keep
operating?
 T T Do you have back-up plans for those operations?
 T T Do you know what you will do if your building is not accessible?
 T T Have you arranged for another firm to serve your customers or clients if you cannot?
 T T Do you know what to do if your suppliers are affected by a disaster?
 T T Do you back up your data in case computers or storage facilities are destroyed?
Go to the Sample Emergency Plan and fill in the following sections. Use the worksheet and
information sheet to improve your understanding of continuity of operations planning.
O Plan to Stay in Business — page 1
O Our Critical Operations — page 2
O Suppliers and Contractors — page 3
O Records Backup — page 6
Continuity of operations planning — or COOP — involves looking at your business from
inside and out to determine what is absolutely essential to keep your operation running.
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 Worksheet: Continuity of Operations Planning
O Carefully assess how your company functions, both internally and externally, to determine
which staff, materials, procedures and equipment are absolutely necessary to keep the
business operating.
Q Review your business process flow chart if one exists.
Q Identify operations critical to survival and recovery.
Q Include emergency payroll, expedited financial decision making and accounting
systems to track and document costs in the event of a disaster.
Q Establish procedures for succession of management. Include at least one person
who is not at the company headquarters, if applicable.
O Identify your suppliers, shippers, resources and other businesses you interact with on a
daily basis.
Q Develop professional relationships with more than one company in case your
primary contractor cannot service your needs. A disaster that shuts down a key
contractor can be devastating to your business.
Q Create a contact list for existing critical business contractors and others you plan
to use in an emergency. Keep this list with other important documents on file in
your emergency supply kit and at an off-site location.
Q Make a list of your most important customers and proactively plan ways to serve
them during and after a disaster.
O Plan what you will do if your building, plant or store is not accessible. This type of planning
is often referred to as a continuity of operations plan, or COOP, and includes all facets of
your business.
Q Consider if you can run the business from a different location or from your home.
Q Develop relationships with other companies to use their facilities in case a disaster
makes your location unusable.
O Plan for payroll continuity.
O Decide who should participate in putting together your emergency plan.
Q Include co-workers from all levels in planning and as active members of the
emergency management team.
Q Consider a broad cross-section of people from throughout your organization, but
focus on those with expertise vital to daily business functions. These will likely
include people with technical skills as well as managers and executives.
Q Include employees with special needs and consider their unique requirements.
O Define crisis management procedures and individual responsibilities in advance.
Q Make sure those involved know what they are supposed to do.
Q Train others in case you need back-up help.
continued on next page
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 Worksheet continued CONTINUITY OF
OPERATIONS
O Coordinate with others. PLANNING
Q Meet with other businesses in your building or industrial complex.
Q Talk with first responders, emergency managers, community organizations and
utility providers.
Q Plan with your suppliers, shippers and other business associates.
Q Share your plans and encourage other businesses to set in motion their continuity
planning. Offer your help.
O Communicate plans with employees and conduct practice drills.
O Review your emergency plans annually. Just as your business changes over time, so do
your preparedness needs. When you hire new employees or when there are changes in
how your company functions, you should update your plans and inform your people.
Information Sheet: Prepare for Utility Disruptions
Businesses are often dependent on electricity, gas, telecommunications, sewer and other
utilities.
O Plan ahead for extended disruptions during and after a disaster. Carefully examine which
utilities are vital to your business’s day-to-day operation. Speak with service providers
about potential alternatives and identify back-up options.
O Learn how and when to turn off utilities. If you turn the gas off, a professional must turn it
back on. Do not attempt to turn the gas back on yourself.
O Consider purchasing portable generators to power the vital aspects of your business in an
emergency. Never use a generator inside as it may produce deadly carbon monoxide gas.
It is a good idea to pre-wire the generator to the most important equipment. Periodically
test the back-up system’s operability.
O Decide how you will communicate with employees, customers, suppliers and others. Use
cell phones, walkie-talkies or other devices that do not rely on electricity as a backup to
your telecommunications system.
O Plan a secondary means of accessing the Internet if it is vital to your company’s day-to­
day operations.
O If food storage or refrigeration is an issue for your business, identify a vendor in advance
that sells ice and dry ice in case you cannot use refrigeration equipment.
Next Steps
O Discuss “what-if” scenarios with members of your emergency planning team.
O Review your critical operations and discuss procedures to follow in the event of a disaster
with the staff person in charge of each operation.
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 Sample Emergency Plan
Page 1 — Emergency Contact Information
Supplemental material for this section:
Testimonial: Aeneas
Inadequate insurance coverage can adversely
affect a business that is damaged or destroyed
by a disaster, or has its operations interrupted.
Consider insurance-related issues such as the
amount of deductibles, how you would meet
payroll and pay creditors, and your business
financial needs in case a disaster hits.
Yes or No?
Y N
 T T Does your company’s insurance provide adequate coverage for emergencies that may
affect your business?
 T T Have you reviewed your coverage within the last year?
 T T Have you reviewed and renewed provisions for other financial preparedness needs, such
as arrangements for emergency finances and protection of vital records,
within the past year?
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 EMERGENCY CONTACT
INFORMATION
Testimonial: Aeneas
The people who work at Aeneas
Internet and Telephone of “And because we were
Jackson, Tennessee, know what ready, our customers
it’s like to have their business
devastated by Mother Nature. never knew the
Fortunately, because they had a difference.”
disaster recovery plan, they also
— Aeneas Internet and Telephone
know what it’s like to recover CEO Jonathan Harlan
from devastation.
On May 4, 2003, Aeneas was among the more than 400 businesses in
Tennessee hit by an F4 tornado, packing winds greater than 200 miles
per hour. The tornado resulted in eleven deaths and more than $50
million in damage throughout the community. Aeneas Internet and
Telephone lost more than $1 million in hardware and software, and its