Run a 72-Hour Outage Plan for Small Companies

When the Aug. 11 derecho hit northwest Indiana, NIPSCO reported that it left about 375,000 customers without power. Nearly two weeks later, more than 20,000 people in northwest Indiana were still dark. In Gary, the outage disrupted local commerce, forced many businesses to close, and created fuel shortages. One resident could not use an asthma nebulizer.

For a small company, the scenario that matters is a multi-day power outage that tests payroll, customers, and equipment. The goal is not to survive forever. It is to survive 72 hours with enough order that you can make the next decisions with clear numbers.

Why 72 Hours Is the Planning Window

Most small-company continuity plans fail because they are either too broad or too vague. A 72-hour window is long enough to cover the first critical period after a major grid failure and short enough for a team of five to 50 people to execute. It forces you to answer three questions: What must stay on? Who can work safely? What do customers need to hear, and when?

The first 24 hours are for safety and triage. Hours 25 to 48 are for stabilizing cash, staffing, and critical systems. Hours 49 to 72 are for deciding whether to extend the plan, reopen, or shift to a longer recovery posture. If you cannot run that sequence, you are not ready.

Track 1: Power and Critical Loads

Start by listing the loads that keep the business alive. For a cash-dependent or customer-facing company, that usually means point-of-sale systems, refrigeration, security, internet, and equipment that protects inventory or customer data. Do not list everything. List only what must run.

• Identify critical loads and assign an owner to each one.
• Estimate wattage and runtime. If a load runs 12 hours a day, plan fuel for 72 hours plus a reserve.
• Secure a generator or portable power source that can run the critical list, not the whole building.
• Store fuel safely and keep a minimum of 72 hours of supply on hand or under contract.
• Protect equipment from theft. During the Gary outage, residents reported stolen generators, so use lockable storage, cameras, and visible security.

A common mistake is buying backup power for comfort. If the generator can run the office lights and POS terminal, but not refrigeration, the plan is backwards. Critical loads should be ranked by revenue impact, safety risk, and customer impact. If a load is not on the list, it can wait.

Track 2: People, Payroll, and Safety

Remote work is a continuity tool, not a perk. The question is whether employees can work safely and whether the business can pay them. Set triggers in advance so the decision is not made in the dark.

1. Define remote-work triggers: utility notice, confirmed outage beyond a set time, road or safety conditions, or a local emergency order.
2. Set a safety rule: no one works in a location where the building, power, or access is unsafe.
3. Decide payroll treatment before the outage. If employees can perform their duties remotely, pay them. If they cannot, document the decision and communicate it plainly.
4. Keep a cash plan. If card processing is down, decide how much cash you can hold, where it will be stored, and who can approve withdrawals.
5. Assign a single point of contact for employee status. Do not let five managers send five different messages.

The trade-off is real. Some roles cannot be done remotely, and some employees cannot get home safely. The plan should name those exceptions and set a rule for when to stop expecting work.

Track 3: Customer Updates and Escalation

Customers need a status, a time frame, and a next update. During the Gary outage, officials asked NIPSCO to list the city separately in restoration updates because broader messages were not useful. If your update is too general, it is noise.

Use a simple template: what is down, what is working, what customers can do, and when they will hear from you again. If you do not know when power will return, say so and give the next update time.

Our store is closed due to a power outage. Online orders are paused. We will update this page every 4 hours until normal service resumes.

Set escalation thresholds. If the outage is expected to last less than 4 hours, send one notice. If more than 12 hours, send a second update with changed expectations. If more than 24 hours, activate the 72-hour plan and begin daily customer updates. If customers face health or safety issues, escalate immediately.

The update cadence should match the risk. For a cash-dependent business, every 4 hours during the first 24 hours is reasonable. For a service business, every 6 to 8 hours may be enough. A predictable update beats a dramatic one.

Putting the Plan Together

Write the plan on one page: critical loads, remote-work triggers, payroll rule, cash rule, and customer update template. Test it once a quarter. Check fuel, generator operation, employee contact list, and the status page. If the test takes more than an afternoon, the plan is too complicated.

A 72-hour outage plan is not about perfection. It is about keeping the business alive long enough to make the next decision with clear numbers. The company that wins is not the one with the biggest generator. It is the one that knows what must run, who can work safely, and what customers need to hear.