The recent spate of devastating floods should alert small businesses to the need to plan for future crises, a business lobby has warned.

The Forum of Private Business (FPB) says SMEs need to plan for the worst in order to save their organisations should a nightmare scenario occur.

"Many small business owners don't like to think that that the worst might happen to their business," said Jo Eccles, business adviser at the FPB. "But when it does it can have devastating consequences."

Fellow campaigning group the Federation of Small Businesses recently estimated the cost of flooding to small firms at £831 million, or £1,531 for each flood-affected business.

It said costs came from damage, business disruption and staff absences.

The FPB said a crisis plan should be clear and easy-to-understand and include the following:

- The people involved and what their role is

- Methods for identifying crises

- Methods for involving management

- Lines of communication

- Mechanisms for reporting

- Process for decision-making

- Equipment, facilities and occupation of crisis management centre

- Levels of control and authority

- Business continuity planning