Re-establish your premises and business records after a disaster

Following a disaster, it’s important to ensure that you can set up a place of business (either your existing premises or a new one).

You may find that some of your premises, machinery, equipment and stock may have been damaged. When you do your clean up you may be able to save some of these items. If that’s the case, it’s best to make sure you safely and securely store these while you get your business back on its feet.

The amount of damage your business has suffered will determine if you are able to reopen your business immediately, or if it will take some time. If the property is safe and customers, suppliers and staff can reach it safely, you may be able to reopen once the clean-up has finished. While you may be able to reopen immediately, you may find that this may not be at full capacity. You may need to open with reduced hours or with limited products and services.

If you are unable to reopen your business at its normal location some other options may include:

• finding some possible temporary accommodation
• working from home
• leasing a new premises

You may be able to negotiate a reduced rate or flexible terms by explaining to the landlord that you have been affected by a disaster.

If you need to move your business, make sure you investigate any proposed new locations.

Records

Having the ability to recover and restore any important business records as soon as possible will help you restore business processes and operations.

After a disaster, it's important to find out what hard copy and electronic records you have. You may need to rely on files stored offsite or any recent back-ups you've made.

You may have been able to save some of your records, files and correspondence during your clean-up. It's important to check what records you have, repair any damaged records or ask for new copies if needed.

Recovering as much information as you can from these records will make it easier for you to check which records you still need to get.

To reconstruct your financial records, you should research your past transactions. If there is missing information, these can be obtained from other sources (e.g. the Australian Taxation Office, your accountant, bank, service providers and suppliers).

Assess your finances after a disaster

Once you have reconstructed your records you should be ready to assess your financial position. Your accountant or financial adviser can help you to do this.

A cash flow forecast will show you the amount of cash available to your business. A profit and loss report will give you a good idea of your financial position. Both will allow you to analyse your business’s current financial position.

Your current financial position may reveal that, to reopen your business, you need funding. Find out more about assessing business finances from the CPA Disaster Recovery Toolkit. The Australian Taxation Office (ATO) provides information to individuals and businesses about dealing with disasters.

Benchmarking allows you to compare your performance with other businesses in the same industry. This gives you valuable information on how your business could be improved.

Manage and pay your staff after a disaster

If your employees live in an area where there has been a disaster, they may have been affected. While some employees may want to return to work, others may ask for extra time to clean up.

In this situation, you should consider the following:

• How were your employees affected?
• Can you do anything to help and support them?
• How many employees do you have available for cleaning and repair work?
• Can you keep and assign other roles to all your employees until your business is back up and running?
• Is there a possibility that some employees will not return?

You should be aware of your legal obligations and responsibilities as an employer if you have been affected by a disaster. Fair Work Australia has information about employment entitlements during disasters or emergencies. If you must temporarily close your business, you may be able to change employment arrangements. For specific information about your situation, call the Fair Work Ombudsman on 13 13 94.

You have a responsibility to provide a safe and healthy working environment even during and following a disaster.

Disasters can cause stress and anxiety, so take care of yourself and your employees. Make sure you keep your employees informed about what’s going on with your business. Check how they were affected and how you could help them. Take staff morale into account. Rebuilding your staff’s spirit will help you create a positive atmosphere as you rebuild.

Communicate with key people after a disaster

Following a disaster, if you can reopen immediately or need more time, you must keep your customers and suppliers informed.

To recover normal business operations, it’s essential to quickly restore your communications systems. To find out how they can help get communications back, contact your telephone and internet service providers. Contact your IT support person to get advice on how to restore your computer systems.

You can find out who was affected by the disaster by communicating with your customers.

Customers

If you have access to your customer database, you can contact your customers and tell them your business plans. For example:

• when you will reopen, and any change to the hours of operation
• where you are operating from now (have you relocated or still in your normal location)
• when you can take new orders
• when you can start deliveries again.

The more information you can provide your customers, the greater the chance that your customers will continue to use your business.

You may need to adjust your marketing strategy if you have been affected by a disaster.

You may find that your target market changes. There may be an increase if there are customers who didn’t need your products or services before but need them now. Or, there may be a decrease if customers now see your products or services as a luxury they can no longer afford.

Suppliers

Make it a priority to talk to your suppliers and distributors to find out if they have been affected. Tell them when you expect to start trading again. Ask your suppliers if the products and services you need can still be provided. Sourcing new suppliers or developing new relationships with alternative suppliers may be necessary.

If you have any concerns about paying debts, discuss the issue as soon as possible. After a disaster, many businesses offer flexibility. For example:

• suppliers may give you flexibility in your initial order terms of payment
• distributors may be able to accommodate your postponed or new delivery schedule.

If you have placed any large orders, you may wish to get in touch with them to negotiate a reduction or cancelation.

It may also be a good time to review your product or service mix based on current supply and demand as you rebuild. Should you diversify? Changing prices? You can calculate your break-even point to find out if you can get the profit you need from your prices.

It's important to speak with your competitors to find out how they have been affected. You might find they have decided to reopen. Some of your competitors may close or sell up because of the disaster. In this case, you may have some new opportunities. This could include increasing your customer base or even buying out a competitor.

It would be good to contact your industry association to discuss your industry’s health and direction. They should be able to give you advice, support and information on how you can get back on track with your business.

Plan for the future after a disaster

An important part of future planning is to analyse how your pre-disaster business was run. You can find ways of improving, saving money and being more efficient. Improvements can minimise the risk of impacts to your business and make recovery it easier.

If you were able to reconstruct your records, you should have a good idea of where your business was before the disaster. Take the time to sit down with your business advisers to seek advice on what you can do to improve your business.

Talk to your insurer to find out if your property and business has the right insurance cover. Insurance policies have different definitions for flood and inundation, so you might want to clarify what you are covered for.

By planning, you can minimise the stress on your business, and yourself.

Talk to your bank to understand what arrangements are in place in the event of a disaster. Discuss alternative solutions in the event you cannot make repayments.

You can identify any areas of inefficiency in your business by asking your employees what, if they could, they would do to improve your business. You may hold a brainstorming session to ask employees what activities can be improved, enhanced or even removed.

Conducting an analysis of strengths, weaknesses, opportunities and threats (SWOT) will give you essential information about your business, and how you can improve your performance. If you had completed a pre-disaster SWOT analysis, comparing it with the results of this analysis would be valuable.

Business planning is a long-term commitment; you don’t do it once, and then forget it. Reviewing and updating your business plan will help your business to stay on track. As well as identify areas for improvement.

Responding, managing and recovering from disasters requires a recovery plan. It gives you a step-by-step strategy to get your business back on its feet after a disaster as quickly as possible.

A recovery plan should be a key element of your Business Continuity Plan.

To find out if you are prepared for a disaster, complete the clickable preparedness checklists. You can reduce the impact on your business by preparing for disasters before they occur.

If you select no to any of the questions in the checklists, this will indicate some of the things that you may need to do to recover from a disaster.

Disaster recovery checklist

The checklist below outlines the steps you can take to help get your business back on track after a disaster. After a disaster, these key steps will give your business the best chance of recovery.

Read through this checklist for disaster recovery and click 'Yes' or 'No' to answer the questions. If you answer 'No' to any question, a list of actions to complete will be created to ensure your business can recover from a disaster as quickly as possible.

By typing in the ‘Other’ section, you can customise the created checklist to include business information.

[the following will be made into a submission form]

Insurance

Have you:

Received confirmation from the emergency services that it is safe to return to your business premises?

Yes
No

Contacted your insurance company to make a claim (before starting to clean up and remove goods)?

Yes
No

Recorded or photographed damage to your premises, fixtures, vehicles, stock, customer records and equipment?

Yes
No

Asked your insurance company if you can make a claim under your business interruption or income?

Yes
No

Cleaning up

For more information on environmental health and food safety

Have you:

Received confirmation from your insurance company that you can start the cleaning, repair or reconstruction process?

Yes
No

Assessed how much work is needed for cleaning and repair? Do you have enough employees, family, friends or volunteers to keep going or do you need more assistance?

Yes
No

Contacted your local council for cleaning and kerbside pickup information?

Yes
No

Ensured undamaged stock, to minimise theft, is in a secure location?

Yes
No

Contacted your local council when you sell food, to find out if you will need an inspection before you start trading again?

Yes
No

Turned off all gas and electricity before you begin cleaning up?

Yes
No

Contacted a licensed electrical contractor to inspect and check your switchboard, wiring, equipment and appliances?

Yes
No

Contacted a licensed gasfitter to inspect any LPG and natural gas appliances and equipment that were affected?

Yes
No

Assess the viability of your business

Have you:

Evaluated if you have (or have access to) the funding needed to reopen your business?

Yes
No

Thought if you want to keep running your business?

Yes
No

Considered how seriously you, your employees, your local community and local infrastructure were impacted by the disaster?

Yes
No

Evaluated whether the market has changed, decreased or increased for your products or services?

Yes
No

Considered options if you decide not to reopen your business, including exiting your business?

Yes
No

Re-establish your premises and business records

Have you:

Salvaged and safely stored machinery, equipment and stock?

Yes
No

Investigated options for your business, including temporary accommodation, working from home, leasing premises or relocation by finding the right location you’re your business?

Yes
No

Considered whether you need to buy, hire or lease equipment to ensure that your product or service can continue to be delivered?

Yes
No

Saved and safely stored your records, files and correspondence?

Yes
No

Determined which hard copy and electronic records you have access to?

Yes
No

Repaired damaged records?

Yes
No

Requested copies of records from key sources (e.g. the Australian Taxation Office, your accountant, bank, service providers and suppliers)?

Yes
No

Assess your finances

Have you:

Completed a cash flow forecast to find out how much cash is available to your business?

Yes
No

Completed a profit and loss report to give you an idea of your financial position?

Yes
No

Contacted your accountant or financial adviser for advice and support as you analyse your business's current financial position?

Yes
No

Benchmarked your business to compare your performance with other similar-sized businesses in the same industry?

Yes
No

Contacted the Australian Tax Office for disaster management information?

Yes
No

Manage and pay your staff

Have you:

Communicated with your employees to ensure they know what’s going on with your business?

Yes
No

Considered how affected your employees are? Can you do anything you to help and support them?

Yes
No

Assessed how many employees you have at your disposal for cleaning and repair work? Can you retain and assign other roles to your employees until your business is back up and running?

Yes
No

Considered whether some employees might not be able to return (e.g. leaving the area, moving to temporary accommodation elsewhere, unable to return to work)?

Yes
No

Considered your disaster or emergency employment entitlements?

Yes
No

Phoned the Fair Work Ombudsman on 13 13 94 to find out about your options?

Yes
No

Communicate with key people

Have you:

Reached out to your telephone and internet service providers to find out how they can help you stay in touch with your customers, suppliers and staff?

Yes
No

Reached out to your IT support person to seek advice on how to restore your computer systems?

Yes
No

Communicated with your customers to find out how they are and provide them with information about when you’re going to reopen?

Yes
No

Identified your target market and identified customer needs (which may have changed following the disaster)?

Yes
No

Spoken to your suppliers and distributors to find out if they were affected by the disaster and to tell them when you expect to begin trading?

Yes
No

Discussed any concerns you might have about paying debts as openly as possible (after a disaster, many businesses offer flexibility)?

Yes
No

Reviewed your current supply and demand for your products and services?

Yes
No

Communicated with your competitors to find out how the disaster affected them?

Yes
No

Contacted your industry association to discuss your industry’s health and direction?

Yes
No

Plan for the future

Have you:

Reviewed your business by sitting with your business advisers to seek advice on what you can do to improve your business?

Yes
No

Checked your insurance policy to see if you have the right insurance cover?

Yes
No

Spoken to your bank to help you both understand the arrangements in place in the event of a disaster?

Yes
No

Asked your employees what, if they could, they would do to improve about your business?

Yes
No

Completed a SWOT analysis to provide you with essential business information and how you can improve your performance?

Yes
No

Developed your business plan or reviewed it?

Yes
No

Prepared a Business Continuity Plan?

Yes
No

Considered what you can do to prepare for a disaster in your business?

Yes

No

Other

Have you:

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[additional issues textbox details 2]

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SUBMIT to produce a checklist of the items you need to undertake to be better prepared