Pre-plan for the wonst

By Randy J. Zellis Pennsylvania Lumbermens Mutual Insurance Co.

a serious loss is

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more effectively the business can restore operations.

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that no businessperson wants or expects to be confronted with. The fact is that serious losses will happen and business owners will have to face the urgent issues associated with the loss.

The building and contents are gone, employees show up with nothing to do, customers are contacting you wondering about their order or shipment, walk-in customers go elsewhere, and your business operations have stopped! What now? Unfortunately, this is a situation that is experienced all too often.

The impact of seeing your business in this condition can be overwhelming. After all, it took years, maybe even generations, to build. At a time like this, clear thinking might be difficult. The decisions made now will be the first steps in making your way back into business and time is of the essence! How long can your key employees be out of work? How long will your loyal customers wait before establishing a business relationship elsewhere? How long before your suppliers are no longer willing to give you that priority treatment again? How long will creditors wait for payments due now?

If this seems like a lot of unknowns, it is. The future and continued success of the business depends on how quickly you resolve these issues and return to business as usual. Standing in the debris is not the place or time to make these decisions.

The most efficient way to be able to make these decisions and prepare for this day is to pre-plan. The purpose of the pre-plan is to provide your business with a blueprint for actions to be taken should a severe loss occur. All aspects of the business operation need to be considered, with the most critical operations considered first. Prepare a systematic approach to evaluating the situation and determining if any portion of the business property can be utilized. If so, can the more critical oper- ations be accommodated? If not, the plan should include viable options.

The plan can be divided into sections such as financial, operational, and communications. These sections should be determined based on the specific characteristics of the business. The various sections of the pre-plan would take into consideration the resources, contacts and procedures to facilitate the quick resumption of business operations.

Financial considerations may include:

. Assuring your company has adequate financial resources to meet immediate and ongoing expenses (payroll, relocation expenses, replacement equipment, etc.)

. Assuring a current backup of accurate company financial records is kept off premises

. Maintaining an available line of credit

Operational considerations may include:

. Set up of a temporary office

Arrangement for moving operations to another location, either on your premises or off-site

. Designating employee reassignments

Assuring delivery or other special operations

Communication considerations may include:

. Contacting key customers and clients to alert them of new procedures or location

Contact list of suppliers to assure obtaining new materials and supplies

. Real estate agent to help obtain a temporary yard or building

Advertising outlet to direct customers to the new location

The pre-plan serves as a comprehensive outline to restore business operations. Each business has specific needs and aspects of operations that need to be addressed within the plan. The more detail included addressing the particular needs of the business, the

Once a loss occurs and interrupts your normal business operations, time becomes very important. During the down time, customers, even your most loyal, will need to go elsewhere and other business relationships may be established. The longer the business goes without accommodating the customer base, the longer it may take for the company to re-establish pre-loss business volume. Hopefully, past customers will return as soon as the business is operational again. Pre-planning to eliminate or reduce the amount of down time can only help reduce the chance of long-term negative effects of the loss.

Review the pre-plan periodically. Over time, information contained in the plan may change, such as customers, suppliers, financial institutions, and other important contacts. There should be more than one copy of the plan available. At least one copy must be secured at a remote location. Should a loss occur that intemrpts your business, this plan may become your most important business document.

Periodically review your insurance program with your broker to make sure that it will provide the adequate financial resources necessary to fund the immediate and ongoing expenses mentioned above. Your broker will be familiar with the Business Income (which requires completion of a fairly complex worksheet by you and your broker) and Extra Expense Coverages that most insurance companies offer, but may not be aware of two additional ways to provide this kind of protection as offered by PLM.

The first, Profits Insurance, allows retailers and wholesalers (not manufacturers) to cover a percentage (usually 25Vo to 33-ll3%o) of the sound value of their stock representing the "mark up" on their merchandise held for sale. The second, Valued Use & Occupancy Form, allows selecting the appropriate limit per week and number.

- Mr. Zellis is asst. v.p. of technical services for PLM. He can be reached at (800) 752-1895, or via wwwpalumbermens.com.

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I toward more formal looks for the kitchen."

Natural finishes. too, are gaining popularity. "A lot ofpeople now look to woods with a naturally dark finish," notes Dianna Holmes, design manager of Canac, the Kohler-owned cabinetmaker in Thornhill, Ontario. "Dark woods are being selected; then, instead of being stained, they're simply clear-coated."

Both designers foresee the emergence of contemporary design in kitchen cabinetry. "It's the influence of Europe, where things are more streamlined," says Buscarello. This accounts for the increased appearance of slab doors on display at the industry's annual new product showcase event.

Among buyers of high-end cabinets, a parallel trend is a preference for less fussy ornamentation. For example, fewer additional moldings are being applied to thicken the rails and stiles of high-end cabinet doors. Instead, more subtle mitered doors echo the simple lines of Shaker and Arts & Crafts styles.

Buscarello also stresses that "every nook and cranny of the kitchen is being plotted now." With many more interior dividers, slide-out shelves and turntable units available as storage options, he says, "there's nothing left to chance."

He also points out that much of what used to be kept in cupboards is being stored in drawers: "Pots and pans are easier to get to, in drawers," said Buscarello. "Heavy-dutv drawer glides make it possible to put large, heavy pots there."

Other trends spotted at the Kitchen/Bath Industry Show include:

. Consumers are opting for a thicker cabinet door-l inch instead of 3/4 inch-because greater thickness often suggests higher quality.

Glazed, distressed and antique finishes are replacing ornate details once popular on many high-end cabinets.

. Painted finishes are holding their own. Although various colors vie for the spottight from time to time-cranberry and omnge each slide in and out of favor; white, off-white and oyster consistently get the most attention.

. The so-called "unfitted look" has strongly influenced cabinet design, with manufacturers looking to create individual pieces of furniture rather than expanded banks of cabinetry. Why? Because open-plan kitchens also embrace family rooms, great rooms and dining spaces, which means sideboards, entertainment centers and open shelving must coordinate with kitchen-cabinet styles.

. As kitchens expand in size and complexity, "mixed orders" are no longer rare. Consumers who want work islands, wet bars, baking centers and butler's pantries incorporated into kitchen design are eager for contrastin cabinet styles, colors, types of wood and finishes.