Across many parts of the US, the threat of natural disaster is an unfortunate reality. At any time, certain areas can be affected by events like hurricanes, floods, wildfires and earthquakes and destroy cities and towns instantly. Natural disasters are often responsible for the displacement of people and the loss of homes, but can often take its toll on a business, affecting capital, personnel and assets.
Larger businesses with multiple offices and locations can sometimes deal with natural disasters better. Small business unfortunately, do not have this luxury and can face weeks or sometimes months of disruption while they fix their premises. In the construction industry, although natural disasters create opportunity for business, but if your company was affected, you will find yourself in the same position as your potential customers.
According to the Federal Reserve Management Agency, after a natural disaster, 40% of small businesses do not operate again. Many enterprises simply cannot recover the costs they lost, making it impossible to get the business running again. The best case scenario during a natural disaster is to be prepared for the unexpected. Below are a few strategies that you can implement to make sure you are able to restore your construction business as quickly as possible after a natural disaster.
Invest in a Recovery Fund
You should consider putting some capital aside for a natural disaster recovery fund, especially if you are based in a city that is known to experience such events. This may be a difficult undertaking, but you will find that even small increments or deposits will go a long way in restoring the business. Only use this fund when you need to, and allocate costs effectively.
Establish your Business in Other Geographies
Having your business present in other geographies – ones that aren’t affected by natural disasters as much – may provide the supplementary revenue that you need to help you get back on your feet. This is perhaps a strategy you can begin to practice prior to a natural disaster affecting your headquarters, and one that you can expand if you find you are constantly being hit. Get in contact with a wide range of suppliers, start researching other areas and see where your you can fit in. Having a construction company in one area may mean that you might have to take your show on the road at some point.
Use Your Resources to Give Back
As a construction company, you are better equipped to deal with natural disasters compared to the common folk. Providing your resources – whether manpower or equipment – to areas that need it the most may be a strategy that can help your business get up and running again. Although you may also be recovering from the effects of the disaster, providing help to the community may help re-energize your customer base and provide you with a greater platform to promote the business.
Increase Collaboration – Even with the Competition
In times of natural disasters, comradery and teamwork will go a very long way. Reach out to those within your industry and you’ll be surprised how much collaborating and working together can rebuild a community very quickly. At a time of emergency, everyone can use the help – whether it is working together with other businesses to fix plumbing issues, electrical problems or helping rebuild homes and offices. By providing everyone a helping hand, you will be rewarded with help from others as well at some point down the road.