While the Houston area avoided extensive damage when Hurricane Katrina hammered the Gulf Coast in August 2005, Peter Hirsch considers the infamous event – the costliest hurricane in U.S. history – an important wake-up call.

At the time, Hirsch was six years into operating his eponymous promotional products company, Counselor Top 40 supplier Hirsch (asi/61005), which is headquartered in Houston. Seeing the devastation Katrina dealt across Mississippi and Louisiana, including fatal blows to small businesses like his, prompted reflection – then action.

“I realized then we needed to have a disaster preparedness plan in place,” Hirsch says.

“You have to protect your business, your staff and your customers, and that’s tough to do if you’re flying by the seat of your pants.”Peter Hirsch, Hirsch (asi/61005)

So, Hirsch and his leadership team began crafting a plan, one that has evolved and expanded as Hirsch’s firm has mushroomed to 140 employees and multiplied its book of business. That foundational and iterative work has helped Hirsch’s company endure subsequent natural disasters that have clubbed Houston, including Hurricane Ike in 2008, Hurricane Harvey in 2017 and intense windstorms last year.

“You have to protect your business, your staff and your customers, and that’s tough to do if you’re flying by the seat of your pants,” Hirsch says, adding that promotional products companies like his trade in reliability and dependability as much as hard goods. “You never want people nervous to place their next order, so having a plan to keep operations rolling is paramount.”

Why Preparation Matters

The unfortunate truth is a crisis can strike at any time – and sometimes without warning. From natural disasters like hurricanes and tornadoes to cyberattacks, labor strikes or active shooter events, “anything is possible” is more than a pithy slogan; it’s a reality of the contemporary world. How companies prepare for potential emergencies will impact their business and their brand.

“Crisis preparation is crucial for businesses because it helps mitigate the negative impacts of unexpected events, ensures continuity of operations, protects employees and protects the company’s reputation,” says Catherine Robbins, director of the Association of Continuity Professionals’ Office of Public Affairs.

Preparation also helps businesses safeguard their long-term livelihood. The failure to develop a thoughtful disaster preparedness plan can diminish confidence in the business among employees and customers, ignite potential legal liabilities and, of course, collapse operations altogether.

A 2020 tornado that hit the Largo, FL-based distribution center of Counselor Top 40 supplier Hit Promotional Products (asi/61125) didn’t derail the supplier thanks to the Business Continuity Plan it had in place.

After a severe weather event, for instance, one in four businesses never reopen, reports Christopher Cioffi, commercial programs manager with the Insurance Institute for Business & Home Safety (IBHS). Despite those numbers and the increasing frequency of severe storms, many business owners continue to believe, “It’ll never happen to me.” After a storm passes, however, Cioffi and his IBHS colleagues often hear something else: “I wish I had prepared better.”

“Don’t wait until it’s too late,” Cioffi warns.

Developing a Business Continuity Plan aligned with Federal Emergency Management Agency (FEMA) best practices enabled Counselor Top 40 supplier Hit Promotional Products (asi/61125) to withstand a December 2020 tornado that struck its distribution facility in Largo, FL.

“Immediately following the tornado, we were ready to respond quickly and deliberately – everyone knowing their job and clear on their chain of command,” says Atiba Tabron, Hit’s vice president of environmental health, safety and security.

Developing a Thoughtful Plan

Over the last two decades, Deirdre Pattillo, senior project manager at The University of Texas at San Antonio’s Small Business Development Center (SBDC) – Center for Government Contracting, has led countless emergency preparedness training sessions for small businesses. She says, “[sound] emergency preparedness planning helps small business owners assess their needs and determine their capacity to respond to any hazards that would impede their business functions.”

(Importantly, Pattillo reminds, insurance itself is not a disaster plan. “Look carefully at insurance coverages and ask questions about what it does, and does not, cover,” she says.)

While Pattillo believes the best crisis prep plans are customized to specific business operations – and she has seen everything from three-step documents to 20-step treatises over the years – she and other experts recommend these steps to help promotional products companies prepare for a crisis.

1. Acknowledge Threats

Lorenzo Sanchez, a Certified Emergency Manager and Master Business Continuity Professional who has developed and implemented emergency management, safety and business continuity programs across multiple industries, says the number-one mistake organizations make with emergency preparedness is simple: failing to acknowledge risks and act accordingly.

“There’s a falsehood that it can’t happen to us, so why invest in planning?” Sanchez says. “Avoid the pitfall of thinking you’re invincible.”

To be certain, the threat landscape is broad and listing potential hazards can prove overwhelming. Sanchez suggests starting with primary threats and hazards relative to geography.

“There’s a falsehood that it can’t happen to us, so why invest in planning? Avoid the pitfall of thinking you’re invincible.”Lorenzo Sanchez, Certified Emergency Manager

For example, a distributor headquartered in California might need to consider earthquakes, wildfires, floods and mudslides; those in Florida face hurricanes, tropical storms and tornadoes. While Mother Nature’s threats differ, any of these can contribute to power outages as well as damage to ports, roads and transportation infrastructure that will threaten a company’s ability to conduct business.

Acknowledging hurricane season in Florida each year prompts action at Hit. Tabron ensures all company facilities are pre-stocked with emergency response supplies and makes hurricane shutters easily accessible.

Beyond geography, Sanchez recommends reviewing threats and emergencies that have befallen the promotional products industry, such as supply chain disruptions, labor strikes and cyberattacks.

“If it’s happened to others in the industry, then it can happen to you, so plan accordingly,” says Sanchez, now the director of emergency management at Trinity University in San Antonio.

2. Define Plan Specifics

With prospective threats identified, businesses can then detail specific steps to prepare for, respond to, recover from and mitigate the impact of those dangers. A steady emergency plan addresses a few key components, including:

• How essential business functions will continue to prevent major disruptions to operations
• How the business will communicate with employees, customers and other stakeholders
• How employees will receive training on crisis response procedures to empower constructive, decisive actions during a crisis

The first responsible step is to have a plan for preserving life, property and assets, Sanchez says. Where do employees go in the event of a tornado? What are the immediate protocols for an active shooter situation?

Thereafter, organizations can move into business continuity and prioritizing critical areas, specifically those with the most significant impact on operations. Robbins suggests developing detailed plans around maintaining critical business functions during and after a disruption, including manual work-arounds if IT infrastructure is compromised or initiating backup power sources. This could include creating remote work opportunities for critical processes to strengthen recovery.

On the communications front, businesses should identify clear communications strategies for both internal and external stakeholders during a crisis. What’s the internal communication tree, and how can staff communicate with leadership? How will the company contact customers and proactively set expectations?

“Staff and customers both want to know what’s going on, so it’s critical we overcommunicate,” says Hirsch Marketing Director George Morgan.

Tabron calls a clearly documented chain of command “absolutely necessary.” Hit identifies essential business functions as “Sections” and has “Section Chiefs” and “Section Deputies” charged to lead each area.

“There’s a lot of information static during the preparation and response phases,” Tabron says. “Your people need to know who their information will come from and who they must report to.”

Inadequate communications, a delayed response or inconsistent messaging can lead to misinformation and erode trust, Robbins says, adding that social media can amplify the noise.

3. Practice & Evolve

To optimize an emergency preparedness plan, Robbins says businesses should conduct regular exercises, tests, simulations and drills to pinpoint weaknesses, improve the plan’s effectiveness and advance staff training.

“This involves assessing current capabilities, prioritizing critical areas and committing to continuous improvement through regular reviews, drills and technology investments,” says Robbins, who calls a lack of employee training on emergency procedures a frequent mistake of organizations. Staff should have the knowledge and skills necessary to respond effectively to various scenarios.

Through practice, Robbins continues, businesses can also evaluate technology and infrastructure to ensure data backup and IT continuity in the event of an emergency. If there are vulnerabilities, then business leaders can pursue the necessary solutions to enhance response capabilities.

As emergency preparedness is an ongoing endeavor, not a set-it-and-forget effort, Robbins urges a culture of continuous improvement.

Businesses should, for instance, provide training and resources for staff to build awareness and strengthen company-wide preparedness. After a practice scenario or an emergency event, she suggests conducting postmortem assessments to document lessons learned and opportunities for improvement. And, at least annually, leadership should also establish corrective actions to close gaps, update plans to reflect evolving threats and conduct regular risk assessments.

“Crisis plans should be living documents that are regularly updated and refined based on new information and lessons learned,” Robbins says.

To continue evolving, businesses can leverage many credible resources. Hit, for example, has participated in official training from the FEMA Emergency Management Institute, while Pattillo says SBDCs scattered across the U.S. can help companies solidify their emergency preparedness and business continuity planning.

“Small Business Development Centers help business owners work on their business, not just in their business,” Pattillo reminds. “Examining and improving the functionality of businesses during blue skies increases their resilience when skies turn gray.”