Effective Planning Can Help Company Survive a Crisis.

When the Air France Concorde crashed in late July, killing 113 people, airline officials were immediately on the phone, radio and television, explaining, consoling and commenting on the tragedy.

They were prepared for the worst and executed a detailed crisis management strategy, including dealing with hysterical relatives and the world press.

But, a few years ago, when a massive shelving unit fell on a woman shopper, crushing her to death, executives at a West Coast home improvement store lost control of the situation.

"It was a nightmare," recalls Christen Brown, a veteran media coach and president of On Camera based in West Los Angeles. "They didn't handle it well because they never anticipated anything like that would happen in their store."

No matter what kind of business you own or manage, and no matter how well things are going, odds are, you may face some sort of a crisis. Your stock price can plummet, a terminated employee may return to the office with a gun, your bookkeeper might embezzle, your product could make someone ill, etc.

Brown and other P.R. and media consultants recommend that every business -- big and small -- have a written crisis management plan, including designating a company spokesperson, making a list of media contacts and composing a detailed strategy for handling, employee, media and community reaction.

"Make a list of all the possible scenarios and all the questions people would ask," advises Brown, a former TV reporter. "Once you know the questions, use role-playing to rehearse the answers to those questions with the company spokesperson."

Being well prepared to handle a disaster is essential to whether or not your company will survive a crisis, Brown said.

"In the case of the shelf collapse, you wouldn't want to say to a reporter, 'Oh my God! I told Joe to fix that last week,"' said Brown.

Robin Cohn, author of the new book "The P.R. Crisis Bible," managed the media dealings after the crash of Air Florida Flight 90.

"When I was head of P.R. for the airline, I handled the crash in Washington, D.C., (as well as) hijackings and financial problems," said Cohn. "It was really a shame what happened to that airline. It was perceived that it went under due to the crash, but it really went under due to fast growth and the fact they couldn't manage the debt."

Cohn said most business owners and executives believe, "it can't happen here."

"If I had a dollar for every time an executive said that to me, I'd be a rich woman," she said.

Prepare for the worst

She said companies must be prepared for all sorts of potential disasters, from a sexual harassment case to computer hackers.

Your plant may burn down, an employee may be arrested for a serious crime, or someone could be hurt at your business. Cohn said she once helped a small restaurant to deal with the press during a well-publicized case of alleged food poisoning.

"The restaurant managers invited the media in to see the kitchen and paid all the medical bills for the ill person," she recalled. "They showed compassion and concern for the person with the problem. When it turned out the food hadn't made the person sick, they wound up looking even better."

She warns business owners to be on the lookout for low employee morale.

"Disgruntled employees are more likely to go to the media or go on the Internet to complain," she said. "And, if something has gone wrong, tell employees about it. Don't let them find out by watching TV."

Cohn and other media consultants often play the hostile news reporter when working with executives in their training sessions.

"I ask very, very hard questions," she said. "They have to learn that the press will ask the worst possible questions and they have to come up with an answer ... without losing their temper."

Consultants like Brown and Cohn charge $2,500 to $5,000 a day. A full-blown crisis media-training program for a large company can cost up to $80,000. If you don't have a budget to cover these costs, there are still things you can do on your own:

* Spend some time outlining "worst-case" scenarios for your business.

* Make a list of questions that the press and public may ask after a disaster.

* Designate an articulate company spokesperson. It doesn't have to be the owner or CEO.

* Practice answering all the tough questions.

* Make a list of local 'and national press contacts that cover your industry.

* Send background information and an introductory letter to several reporters so they know something about your company.

* Try to set up a meeting with a few reporters who may be interested in covering your company.

* Don't be an ostrich. Prepare for the worst and hope nothing ever happens.

In other news

Molly M. Pazsint of Eagle River, Alaska, has been named the "Future Entrepreneur of the Year," by the National Association for the Self-Employed (NASE). Pazsint will receive a $12,000 scholarship to attend the University of California at Davis.

In addition to being an outstanding student, Pazsint helps run her family's small aircraft tire business, Alaska Tire & Rubber Co. The company makes tires for small aircraft used for tourism and relief mission flights around the world.

NASE also awarded $4,000 scholarships to 22 other students across the United States. All winners are children and dependents of NASE members...

CampusEngine.com, a Folsom startup helping college newspapers transform their Web sites into Internet portals, won $100,000 in MoneyHunt's "Wow! What a Great Idea" contest. MoneyHunt, which airs on PBS stations, held a national competition to award the money to a promising new business.

"We are thrilled to win this competition and the confidence of people who see thousands of business plans," said Jack Crawford Jr., CEO of CampusEngine.com. "We are already partnering with nearly 70 newspapers across the country -- and we expect the number to grow to 150 by the end of the year."

The company's network of newspapers serves 1.9 million students in 29 states. The firm received $1.5 million in first-round financing in January, and hopes to close a second round this summer.

Jane Applegate is the author of "201 Great Ideas for Your Small Business," and is founder of ApplegateWay.com, a multimedia Web site for busy entrepreneurs.