Your business can be humming along, with your plan working perfectly, and disaster strikes in a second. Recessions and pandemics have thrown entire sectors of the economy off their axis.
Government interference has rendered business models irrelevant with the stroke of a pen.
Even on a much smaller level, a local infrastructure change or accident with utilities can undo the best-made plans.
Any business that doesn’t prepare is setting itself up for failure.
But how do you plan for the unexpected? Some indicators can be found, but natural disasters and accidents take everyone by surprise. But that doesn’t mean you’re defenseless in the face of unfortunate circumstances.
There may be setbacks that are unavoidable, but a business with a well-crafted emergency plan can find itself rebounding far sooner than its competition.
Here are a few ways to insulate your business from the fickle finger of fate:
Natural Disasters Don’t Have to Close Small Businesses
None is more vulnerable to a sudden disaster than a small business. Facing the possibility that their product or service is no longer needed, a chain business will usually have the financial stability to weather setbacks by restructuring to ensure they stay in business in difficult times.
However, a small business is often barely making it from one fiscal month to the next and can find itself with no choice but to permanently close.
So how can this be avoided without the deep pockets of a large corporation? It depends on the circumstances, but the most successful businesses are those that secure their financial stability when they have the chance.
A crisis plan that stores away a percentage of excess profits for backup when business slows down will have the best chance to be left standing when the dust clears.
Communications Channels Can Stay Open
Sometimes, the biggest challenge in a crisis is to make the right decisions in the moment.
This is incredibly complicated when the person who has the final say isn’t available – say, if the boss is out of the office and the phone lines are down in the location.
Ensuring uninterrupted communication channels is one of the most important things a boss can do to protect their business.
If you’re still relying on traditional landlines – or even paper documents – you might be setting yourself up for disaster. Lost inventory can be replaced, but lost history can’t.
This is why many companies are switching to using cloud PBX system software for their communications and storage.
These services combine all communications systems in one easy-to-use virtual network and can also store all your valuable data off-site with a third-party company for added security.
Staff Should Be Well Taken Care Of
Your staff does their best to ensure the company moves forward and they should not be left stranded when the business is going through a financial crisis.
The federally mandated Worker Adjustment and Retraining Notification (WARN) Act requires that you give your staff at least a 60-day notice of closure, but this applies to organizations with 100 or more employees.
Ensure that there are some emergency funds to cater for the final paycheck or severance pay if your organization is facing the certainty of a complete shutdown.
Stored Insurance Information Can Help Rebooting
In the aftermath of a damaging emergency, how quickly you rebound can depend on how much information you have on hand.
If your insurance documents are lost in the fire, it can set back the financial compensation for a long time. This is why it’s important not just to have proper insurance but know how you’re going to access it.
The first step is to have more than one copy of your insurance information. Ideally, you should have it on-site in case of an inspection, have a copy off-site, and have it stored digitally for preservation.
This will help you develop a business continuity plan where you know how much money you’ll have on hand to rebuild.
Rebuild Better
No one wants to think about a potential disaster.
However, having a plan can help your company rebound and build back stronger.
Planning before disaster strikes is the key to ensuring your small business survives and endures.
