There’s a lot that can go right when running a business, but there’s also a lot that can go wrong. Some of those things you might expect, like dealing with employee turnover and struggling to find new customers. It’s important to plan ahead for possibilities like these, but there are other types of disasters that can negatively affect your business that you may not expect.
Natural Disaster
A lot of the bad things that can befall a business are actually related to the business, as you’ll see in the upcoming examples, but don’t forget about mother nature. There are many kinds of natural disasters that can cause you to shut your doors temporarily, or even for good.
A few of the most devastating natural disasters that can ruin your business include:
- Floods
- Fires
- Tornadoes
- Hurricanes
- Earthquakes
- Blizzards
- Heat waves
Even less serious natural occurrences can impact your business. For example, if a strong thunderstorm comes your way, you may have to deal with having the lights go out for hours or days at a time.
It’s important to have an effective business contingency plan for the types of natural disasters that could impact your business. For example, you will want to choose a recovery partner that specializes in the type of disaster you want to prepare for, outline first steps to take when disaster strikes, and train employees on escape routes and actions to take during the recovery process.
Tech Systems Stop Working
Natural disasters can be devastating, but so can other types of threats, especially when those threats can affect your computer systems. From equipment failures that shut down your business to cybercrime and theft that results in the loss of data, not taking good care of your technology can ultimately cripple your business.
Not only should you plan ahead to secure your IT systems, you should also create a contingency plan in case the worst-case scenario does happen. Be creating a plan of action and testing it ahead of time, you can keep customer information safer, you can keep company data more secure, and you can get back up and running sooner after an attack.
Supply Chain Disruptions
Your business doesn’t operate in a bubble. There are many other businesses you rely on to experience success, so when something in their business goes wrong, it isn’t long before something can go wrong in your business too.
Supply chain disruptions can be especially difficult to overcome. Without the right products and services from third-party companies, you may not be able to sell your products or provide your services.
Fortunately, you don’t just have to wait out a supply chain disruption. There are things you can do to overcome a supply chain problem. One of the best is building an inventory. Even if you only create an on-site inventory of a few weeks’ worth of items, it can help you through a tough spot. Assessing your network for blind spots and having backup suppliers in case of an emergency are good ideas too.
Cash Flow Interruption
A cash flow interruption is one of the scariest disasters you can face. Some you might expect, like losing an important client or buyers, but others, like collecting receivables too slowly, growing too quickly, and not creating a cash flow budget can all leave you without the cash you need.
Consider all of the ways you can experience cash flow problems in your business and create a plan of attack for each one. Creating a savings account is always helpful, as it can provide you with easily accessible money when you’re in a tight spot.
Illness
You don’t expect an illness to devastate your business, but it certainly can. The Coronavirus pandemic showed us how quickly an illness can shut down the economy, but experiencing a personal illness can be surprisingly troublesome too.
Most entrepreneurs do sick days all wrong. For example, you don’t want your business to be completely dependent on your presence, because that means the whole operation can slow or fail just because you stayed home.
Make sure others are trained to pick up the slack if you’re sick, and make sure others can rely on their coworkers to fill in for them, so the company isn’t doomed for the day because a key member of the team is out of the office.
Ignoring a potential problem and hoping for the best are not good ways to avoid disasters that can befall your business. It’s much better to know what kinds of challenges you could face so you can prepare for them before they strike.
