Ways To Plan For A Natural Calamity And Rebuild Your Small Business
Having your small business in the path of a natural disaster is one of the cruel fates that can befall an entrepreneur. Every region in the United States is a beehive of potential natural disasters waiting to happen- tornadoes, hurricanes, floods, and earthquakes. But better safe than sorry, is the motto that all entrepreneurs must abide by. This way you can recover from it, and begin the process of rebuilding and getting back on your own two feet as soon as possible.
This makes sense, right? not to many business owners though. Close to 40% of the businesses that are lost after an event of a natural disaster is not open. The national insurance claims say that 3 in every 4 small businesses have no plan when a disaster hits them. Are you planning to be part of the percentage or do you want to stay prepared?
In most cases, even after the business has reopened, it takes close to 3 months for them to recover. It is difficult to rebuild what is lost, regain the pace of business, and strike a balance.
No matter which news weatherman tells you, there is never a sure-fire way to predict well beforehand when a natural disaster is to strike. What you can do, is to prepare yourself in the event of one- both emotionally and financially- so that you can hit the ground running from the dust settles. Here are some ways you can do that:
Put In Place A Disaster Review Plan
Doesn’t matter if it’s a behemoth or a small business, having a business plan in place can help to mitigate the damage that the disaster doles out on your operations. The plan has two parts- the first involves replacing any crucial part of your business. Do you have marketing or sales data that is backed up safely? What about the documents from your employees? Do you have vendors or business contact that can replace any damage in supplies and tools that is necessary for you to continue business operations?
Asking yourself these difficult questions in times of peace can help you act defiantly in challenging times.
The next step involves talking to your employees and making sure that the information is shared among your staff, or creating a smooth channel for internal communication such as email chains. These ensure that everyone can be checked on, and their statuses can be updated. A calculated business decision can be taken based on them. Confusion and miscommunication can be mitigated and reduced.
Protecting What Is Yours
Business insurance is a must if you are living in an area that is prone to natural disasters like earthquakes, tornadoes, and floods. There are several insurance providers that provide natural disaster specific insurance policies. The financing infusion from these can help you to find your feet faster especially if you need to replace equipment faster than intended.
Perform frequent backups of your sensitive data that is key to your business processes, both in the cloud and in the form of physical storage that is local. Always have multiple backup sources so as to ensure that in the event of a system failure, you have your data. Data and sensitive digital information are critical to ensure the smooth running of your business and are one of the most valuable assets any business has.
Keep The Line Of Communication Open
Make sure that all of your employees are informed about what precautions have been enforced in the event of a natural calamity. Make use of communication channels like social media so as to keep your clients, customers, and partners aware of your current situation and the short-term plans that you have set in place. Reassure your customers that you are still in business and you will bounce back to normal.
Talk to your vendors and business partners and keep them in the loop of when to expect operations to start again, what you need from them when you reopen, and by when you can resume your normal services, especially in the case of a long-term contract in play.
Being transparent will help you to retain your customers and partners, and allow you to rebuild quicker.
Look Out For Disaster Relief Funding
Recovering from a disaster can leave you in financial ruin at times, and you will require all the money you can get hold of to get things back to normal. Talk to the different lenders to see if they offer a disaster specific loan, or contact the Small business Administration for programs that are related to those affected in natural disasters. Getting the right help will put you in fighting shape.
Are You Under A Loan Agreement?
If you are paying off a loan already, then sit down to discuss temporary new terms of payment which can help give you breathing space and rebuild your business. There are many major banks that will waive off late fees and set up new payment schedules in the event of your business being hit by a natural disaster. Work with your lender to avoid adding up to the already large stockpile of hardships you are facing.
If you find yourself in the path of a natural disaster, these pointers should come in handy in helping you rebuild your business again, while cutting down losses to the barest minimum.
For every financial help, contact Building Block Capital at (877) 386-3035 or write to us at firstname.lastname@example.org