Business Education

Why Natural Disasters are So Disastrous to Businesses

While hurricanes Harvey and Irma are gone, Hurricane Maria poses a possible threat. And, that’s a warning because in the aftermath of Hurricane Sandy, there were over 1 million insurance claims processed. The fact of the matter is, there are still businesses in Texas and Florida which are dealing with the devastation left by Hurricane Harvey and Hurricane Irma. Although time has passed, simple supplies remain scarce. This isn’t to unnecessarily frighten you, only to serve as a stark reminder natural disasters are so disastrous to businesses of all kinds.

Why Natural Disasters are So Disastrous to Businesses

Dealing with a business emergency doesn’t have to be an exercise done on the fly. In fact, it shouldn’t be approached without an effective plan. However, too many businesses simply are not prepared. Statistics show that 94 percent of all small businesses in the U.S. do backup their critical financial information. But, only 4 in 10 backup off-site.

From natural disasters like Hurricane Sandy to common theft and hardware malfunctions, small businesses are particularly vulnerable in times of crisis. “Disasters can wipe out a small business in seconds,” said the U.S. Small Business Administration (SBA). Yet small businesses are often the most unprepared for emergencies. —Forbes

This one figure is a peek into why so many businesses fail in the wake of natural disasters. Nearly 40 percent of all small businesses never reopen following a natural disaster, according to the Federal Emergency Management Agency or FEMA. That’s not an insignificant figure to ignore. And, it clearly shows businesses are quite susceptible to natural disasters.

How to Protect Your Business from Natural Disasters

You shouldn’t have to endure more stress and worry than necessary. Your company can make it through a fire, earthquake, tornado, or hurricane. All you need is a plan and to be proactive. This way, you’re fully prepared and know precisely what to do. Here’s a few helpful suggestions for how to protect your business from natural disasters:

Back up company records in the cloud. Not only should you routinely backup your company records, including your financials, on-site, but off-site, as well. There are many platforms out there and these provide an invaluable service. Focus on those which cater to business information as those will offer the best fit.
Establish clear policies for employee, vendors, and customers. To keep your working relationships in good standing, you’ll need an actionable plan for team members, vendors, and customers. After all, if there’s going to be a delay in paying employees or delivering to your customers, you need a way to deal with such situations.
Create a workable continuity plan to follow in the aftermath. Your continuity plan should identify key and essential operations. Basically, what your business can’t do without. You might need to cross-train employees. But, your goal is to put a workable continuity plan into place.
Run drills from time to time and strive to make improvements. Even the best plan is useless if it’s never practiced. So, run drills periodically to keep everyone in practice. This will help ensure things run smoothly if the time comes.

What’s your business’ plan for a natural disaster? How are you preparing your company to avoid losses? Are there any other precautions you would suggest taking? Please share your thoughts and experiences by commenting!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Strategic Moves Small Business Owners can Make during Rising Inflation Periods

January 13, 2022 No Comments

Rising inflation is affecting both consumers and businesses alike. As the dollar’s purchasing power decreases, and prices for goods and services rise, a vicious cycle ensues. Small business owners are obviously not immune to this damaging dynamic. These small companies experience a decline in sales volume and their top lines fall. Fortunately, there are some strategies that small business owners can use to their advantage, even as inflation rises. While these moves won’t magically make all their problems disappear, they will help them to get through this trying time and even realize a greater profit in the future. Expect the Unexpected It is very easy for small business owners to get comfortable in their routines. So, when circumstances change, they generally are not prepared. The shock can lead to making rash decisions and as everyone knows, decisions made under duress don’t typically go very well. Because there is no way to tell how long this inflationary cycle will last, it’s best to adapt to the disruptive environment than to ignore it and hope to weather the storm. An increase in inflation has a number of effects on the economy. First and foremost, it erodes purchasing power as the cost of retail goods and services increase. It can also raise the cost of borrowing as interest rates increase due to increased risk. Inflation increases can also fuel further inflation, creating a feedback loop. —Yahoo Finance In other words, don’t just plan for the immediate short-term, think farther into the future and consider possible contingencies if this inflationary run persists past expectations. Since there’s no real way to know when it will end, it’s far more advantageous to be able to pivot and maneuver on short notice. Otherwise, you could get caught off guard and that could spell big trouble. Strategic Moves Small Business Owners can Make during Rising Inflation Periods The good news is that inflationary cycles don’t last forever, they are temporary. But in such situations, there will be challenges. So, you can use the following strategies to help your small business make it through inflationary times: Offer long-term contracts. During periods of uncertainty, people relish the comfort of stability. Suppliers, vendors, and clients are no exception. Offer them long-term contracts at agreeable terms and that will alleviate some anxiety. It will also help to give you more peace of mind in the short term and can also help to set your business up for future success. Invest in technology. Smart business owners take advantage of these circumstances by doubling down where it really counts. Technology gives businesses the power to increase productivity with fewer employees. Technology is a force multiplier. By expanding their technological assets, companies can not only meet but surpass client demands with fewer human resources. Refinance your debt. Interest rates remain at near historical lows at the moment. But, they are likely to go up through the year. So now is the time to lock in a lower rate and refinance your debt. Paying just a little less in regular installments will help to free up cash for use elsewhere. Resist shrinkflation, if possible. Consumers are very well aware that they are getting less and still paying the same amount or more. Big corporations use this sleight of hand and needless to say, the general public doesn’t like it. If you are able to deliver the same goods and services for the same prices as you normally would, continue to do so for as long as possible. This will most definitely help you stand out from the competition and your sales figures will reflect it. What other suggestions do you have for small businesses that are dealing with rising inflation? Please take a few moments to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

The 3 Biggest Social Media Marketing Mistakes

March 10, 2020 No Comments

The three biggest social media marketing mistakes small businesses make might surprise you. In fact, two of them seem contradictory, that is, once you learn their details. But, knowing about these unforced errors can help a business create brand awareness, reach a larger audience, and sell more. Read on to learn about the three biggest social media marketing mistakes small businesses make. The Importance of Social Media Marketing Social media marketing is an obvious necessity in today’s business environment. Consumers get most of their news and information from social media. It’s where 3 out of 5 consumers discover new products and services and/or are repetitively exposed to them on a regular basis. It’s also the place where literally hundreds of millions of people go day after day. Most modern businesses understand the importance of using social media to promote their brand and interact with consumers. Indeed, social media is at the core of many companies’ digital strategy, often delivering measurable results in terms of sales, leads and customer service. That said, there are many social media mistakes that we see time and time again: strategic errors that leave leads on the table and opportunities unexplored. —Forbes.com With such wide reach and exponential potential, it’s no wonder social media marketing is the preferred medium of the largest international brands. Small businesses can also tap into this powerful branding tool, by building a presence. However, it must be done with an effective strategy. 3 Biggest Social Media Marketing Mistakes The lack of strategy, unsurprisingly, is where too many businesses go wrong. Just having a presence and posting updates isn’t enough. It is very important not to commit these three huge social media marketing mistakes, too: Posting too little. If there’s one rule small businesses should follow in regards to social media marketing, it is consistency. Too many businesses start off posting regularly, only to update their pages less and less. Eventually, updates are sporadic, becoming few and far between. Hence, people don’t encounter them often enough and that’s a really bad thing. Posting too much. On the other hand, some businesses over do it. They post so frequently, there’s no discernible message or value to their target audience. These businesses make the mistake of confusing quantity for quality, and that too, is a huge mistake. Posting for the sake of it usually only serves to irritate people, not endear them to the brand. Not effectively branding. The last point plays into this one. It’s a well-known fact in the digital marketing world people often forget where they see things on social media, more particularly, not remembering the source. In other words, they might recall a product or service, but can’t recall the platform on which they saw it, and more importantly, which business it posted the content. Therefore, it’s imperative to have a consistent brand presence so people associate your business with its products and services. What other mistakes would you advise small businesses to avoid? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

I Just Learned One of My Best Employees Criticized My Business On Social Media, What Should I Do?

March 1, 2021 No Comments

You’ve just discovered one of your best team members has criticized your company on social media. So, you’re wondering what to do about it. Well, that depends if the comments were overall positive or negative. If the former, there’s quite a bit you can do. However, if it’s the latter, there’s relatively little you can do. Read on to learn more about how to deal with employees who criticize their organizations on social media. Dealing with Negative Employee Comments about Your Business Let’s begin with a negative situation. You’ve recently found out a great employee (who you like and trust) has made some really disparaging comments about your company — maybe even directed at you personally — on social media. Now, you’re wondering what to do about it. If the comments are negative and harmful to your business’ reputation, you most definitely need to address the situation immediately. Criticism in the workplace can be constructive if an individual is pointing out concrete inefficiencies and offering suggestions for positive improvements; or criticism can be destructive, when one person tears down and negatively critiques the actions of others while offering no suggestions for positive improvement. —Houston Chronicle Small Business This is a difficult conversation to have, there’s no doubt about it. But, a stern warning might be enough to move past the moment. It’s probably also necessary to talk about his or her future and potential separation from the company, should the behavior continue. While it’s a hard thing to do, derogatory comments simply are not acceptable. So, invite him or her to vent their grievances in private instead of on social media. Dealing with Positive Employee Comments about a Your Business If this is a situation where the comments were critical yet constructive or positive, it’s an entirely different set of circumstances. Since it’s a totally opposite attitude, you might still be personally hurt or feel undermined, but it’s far better than dealing with a completely negative scenario. Here are some effective methods for dealing with a good employee who publicly criticized your business on social media: Make him or her understand the proper context. The very first thing you need to do is to let him or her know that it is not acceptable or appropriate to criticize the company on social media. Instead, the appropriate time and place is right in the workplace, where discussions are private and between colleagues, where such input belongs. Let your employee know your door is always open. Of course, it’s up to you to open your office door and make all your employees understand they have an open-ended invitation to speak with you at any time they feel it is necessary. (Obviously, you’ll need to set some boundaries to ensure there’s mutual respect and interactions remain overall positive.) Solicit feedback from all your team members regularly. While this might be super-obvious, it’s most definitely worth repeating. You cannot operate in your business in a vacuum. It’s not a good dynamic and worse yet, when you don’t listen to the people around you who are in the trenches with you, it’s only going to erode the environment and worsen over time. What other suggestions do you have? How else would you handle such a situation? Please take a moment to share your thoughts and experiences so others can benefit from your unique perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Why Natural Disasters are So Disastrous to Businesses