“How to Plan and Prepare for the Unexpected in Your Family Business” article banner | Ferguson Alliance
When you run a family business, you will encounter unexpected events.
For example, when Hurricane Ike struck, my former employer’s building was damaged significantly. We didn’t have a plan in place, so the person who lived closest was called on to “go and check it out.”
That person was me!
This experience highlighted the importance of deciding ahead of time what should be done, and who will take charge and make decisions if disaster strikes.
It’s easy to overlook potential risks, but unexpected events can have major consequences. Here are some typical “unexpected” events that you can plan to expect:
- Absence of a key employee
- Natural disasters
- On-site emergencies
Preparing for these events is essential for business continuity and long-term organizational health.
Preparing for the Absence of Key Employees
You never know when a key employee might suddenly become unavailable – because of illness, family emergency, abrupt resignation/termination, or some other unexpected event.
Without someone ready to immediately fill their role, business operations can quickly fall behind. To be as prepared as possible, you can take the following steps:
1. Document Procedures
Make sure all processes and tasks are well-documented – and regularly updated. Your goal is to have procedures clear enough that anyone, even someone unfamiliar with the task, can follow them and successfully complete the work.
2. Cross-Train Employees
It’s not enough to train someone once and expect them to be ready to step into a new role when needed. Regular cross-training helps make sure that multiple employees can step into different roles if you need them to.
3. Rotate Tasks
One way to reinforce cross-training is by rotating tasks among employees on a regular basis. This not only lets the team practice covering for each other but also allows for errors to be caught and corrected before they become bigger issues.
4. Reward Employees for Flexibility
Recognize and reward your team for their willingness to take on new responsibilities. When you acknowledge their efforts to learn new tasks and step in when needed, you create a culture of teamwork and adaptability.
Preparing for Natural Disasters
Major disasters, like hurricanes, floods, or freezes, can disrupt your operations in ways that often are hard to imagine, much less predict. But being prepared can minimize the impact.
1. Create a Formalized Disaster Recovery Plan – and Share It With Your Team
Your disaster recovery plan should be clear and accessible to all team members. Everyone needs to know where to find the plan and should clearly understand its content.
2. Back up Data Off-Site
Make sure all essential data is backed up off-site – so even if your office computers are destroyed, you’ll still have access to critical business information.
3. Develop a Communication Plan
Set up a clear communication plan in advance. Decide – and document – who will be responsible for reaching out to employees and providing direction in case the office becomes inaccessible.
4. Establish Vendor Relationships
After a disaster, resources like water, construction services, or repair equipment will be in high demand. Secure agreements with vendors ahead of time so that your business is on their priority list for service.
Preparing for On-Site Emergencies
While we often think about employees being unable to come to work during an unexpected event, there are times when they might actually be at the office during an emergency, such as a flood or tornado. And sometimes those people won’t be able to leave your physical office location, depending on the situation.
1. Have Some Basic Supplies on Hand
Keep a supply of water, blankets, and other essentials. A backup generator is also a good idea to keep cell phones charged and lines of communication open.
You don’t have to make elaborate preparations, but make sure you have enough to account for team members being unable to leave for a day or two.
2. Create an In-Office Emergency Plan
Just like your disaster recovery plan, this plan should be clearly documented and include details on how to communicate with family members and coordinate with other employees if an emergency occurs during work hours.
For further information on family business preparedness, please read the original article found on the Ferguson Alliance website.
