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President's Post - Archive
Small Business Survival Despite Nasty Winter Weather

February 1, 2014

The winter of 2013/2014 has been particularly nasty. Some would even say gruesome, horrible, disgusting, disastrous… you get my drift (pun intended). Businesses have been negatively impacted in numerous ways:

Customers not coming in because of severe weather negating their mobility or necessitating office closure; staff not coming in for the same reason; deliveries (from vendors or to customers) being delayed or cancelled; opportunities lost because of inability to fulfill orders…. The list goes on and on.

How is a small business, particularly one barely hanging in after the debacles of Super Storm Sandy and a major downturn in the economy?  The sad truth is that some businesses will not survive. They simply live too close to the vest and cannot find the fund to continue despite these issues. For those who do survive, this is a time to take some lessons and prepare for the next storm (for surely it will be here sooner than you think). Here are some basic tips to help you weather the storms:

-         Review your cash flow reserve and make sure you keep enough in reserve to cover downtime or extra expenses due to the storms;

-         Examine the way your employees work- can any of them be set up to work remotely (from home) with a computer, internet access, a phone? Certainly, back office people (administration; accounting; etc) can be set up that way so that in the event they can’t make it into the office, you don’t lose a day’s work from them.   

-         Examine your company’s computer systems, backups etc. - remember the discussions about creating an emergency (disaster) back up plan, one that covers staffing, computer back up etc? Get to it! Put the systems and procedures in place now so you are prepared for the next storm;

-         For the retailers who rely on bodies coming into the store- can you set up a better presence on the web and/or social media, thereby enabling customers and potential customers to reach you despite the weather? This will expand your business’ marketing, outreach, targeted  customer base as well as  keep some business going during storm times.;

-         Dealing with deliveries is a difficult issue in bad weather. You may have to be prepared to officer discounts to customers for delayed deliveries in order to retain their business. You may have to be willing to pay extra to suppliers and their delivery people to put you first on the list when deliveries resume. You may have to use alternate delivery methods (more costly of course). This is where some of that extra cash reserve comes in handy. It allows you to be flexible to meet the situation.

-         Establish a good communication system to deal with your employees, suppliers, customers and others during inclement weather. Keeping people informed goes a long way to retaining their loyalty and willingness to work with you.  

-         Look for opportunities to make the bad weather work for you. If you provide facials and massages in your salon, create some winter weather specials to get people back as soon as the weather clears. Distribute flyers to the homes and businesses within walking distance of your salon to encourage people to make that trek in the snow to your place for a much needed break from cabin fever and snow shoveling stress.;

-         Put safety first. No amount of business is worth people’s lives. Create a safe environment for your employees and customers by making sure the sidewalk in front of your store is ice free. Slippery mats on the way into your store may keep the floors cleaner but risk entrants’ bones and lawsuits.

-         Make sure you and your staff are prepared to make up some of the time lost during these major storms- maybe working weekends, evenings till caught up. Establish firm policies regarding payment to staff when you have to close. These policies will vary depending on laws as well as your ability to compensate and your need to retain good employees. If you are not required to pay certain staff for time when the business is closed due to weather and cannot afford to do so, think about making it up to the staff in another way- perhaps with deferred pay when times are better or some other method- so that neither you nor your staff are completely negatively impacted. Just make sure you have a clear policy and it is communicated to staff before the next storm so everyone can be prepared.

-         Talk to your lenders, suppliers, vendors, employees, major customers, and others in advance and agree on how you will handle these disasters (and they can be disasters for your business). Maybe together you can come up with some ideas to lessen the negative impact of bad weather on your business.  And who knows, together you may even be able to figure out how to turn this nasty winter weather into a positive for your business.

Winter weather’s impact on your business should mean more than survival for you- try and use it as a catalyst to improve your business practices and thrive despite winter’s wonderland.



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