Help for Small
Businesses Caught In Disasters
If your small business experience a natural disaster it
could spell doom for the business.
Many businesses never recover from a natural disaster
because they lack the resources to rebuild.
What can a business do to survive a disaster?
It is a question that most entrepreneurs ignore until
they find themselves in a bad situation.
This question should be answered now.
Every small business is at risk of experiencing a
Your location does not grant you immunity from
can strike at any time with a hurricane, tornado, volcano
eruption, excessive rain that leads to flooding and mud
slides, fire started by lightening, earthquake, sink holes,
There are many things that could could hamper a small
business's ability to recover quickly:
-Out of pocket expenses:
In order to rebuild the entrepreneur will have to pay
for most of the recovery effort out of pocket until he/she
is re-imbursed by insurance or they get a loan or a grant.
Payout from insurance or getting a bank loan will
take time and a great deal of persistence.
These expenses could range from demolishing and
rebuilding a damaged building (if you own the building);
keep funding payroll while you rebuild; rebuilding your
supply levels; buying new furniture; buying new vehicles;
funding an alternate worksite, etc.
-Smaller Customer Base:
A small business hit by a disaster could be impacted
by a smaller customer base if many of their customers are
also impacted because of their location in the disaster
zone. If your
customers are also in the disaster zone they will be
focusing their resources on their own recovery efforts and
may not have the resources to buy from you.
If you're the kind of business that sells the kind of
supplies that are needed in a disaster situation (such as
building materials) then your small business could
experience less determination in the customer base.
The local economy has to recover in order for small
businesses in the area to recover.
By that we mean that key infrastructure such as
electricity, gas stations, water, sewer, medical, etc....has
to be up and running.
The transportation infrastructure is key to getting
supplies delivered and shipment of products going to
Retailers can't get their shelves restocked unless the roads
are safe for supply trucks to make deliveries.
As an entrepreneur there are two questions you need to ask
So, what can you do to minimize the cost to your small
business before it is faced with a disaster situation?
SBA's website for Disaster Preparedness:
can you get help if your small business experience a
Small Business Zone webpage on getting
Freelance Isn't Free Act (FIFA)