Provide 7 disaster prevention courses for your business

Provide 7 disaster prevention courses for your business

Provide 7 disaster prevention courses for your business

Owning a business requires the best planning Prepare for the worstBoth natural disasters and economic crises can disrupt operations, drain resources, and force you to make difficult choices. Certain disasters-such as the coronavirus-are black swan events, which means that no one can predict them. Nonetheless, it is still vital to develop a plan to keep your business in good shape during various crises.

Here are seven valuable lessons Prepare your business for future disasters.

1. Conduct an annual risk assessment

Conducting an annual risk assessment can help you identify the threats your business faces, including potential financial issues or office security risks.

“The ability to prepare for a crisis starts with being able to see the potential scale of the crisis,” said founder Christine Matzen. Oak Street StrategyWhen measuring risk, please evaluate these three aspects.

financial: Review your cash flow, Expenses, debt and sales forecasts to check your business’s financial status in the next six months or one year. You may notice red flags or areas for improvement.

Technology and equipment: Data breaches and other cybersecurity threats can damage your company’s reputation and cause lost profits. “Technology is constantly evolving,” so it’s important to audit your company’s security system, says Rob Stephens, CPA and founder. CFO’s perspectiveFor example, you may need to install enterprise-level network security equipment or start using multi-factor authentication for employee accounts.

office: Check whether your buildings are in danger, and consider the risk factors that your business faces from disasters such as hurricanes, floods, and earthquakes. Matzen says that you might even want to consult a local firefighter for preparation tips. “They can also inform you of how their agency works during a crisis, so you will learn about triage centers or other crisis plans that you can include.”

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2. Train employees to handle different situations

Once the business risks are identified, start to train employees Training plan.

Matzen said, start with basic CPR and first aid training for your employees. “In addition, you should always keep employees trained on your escape plan, disaster preparedness, and information about any hazardous materials.”

Stephens said it is also important to cross-train employees to ensure that at least three people know how to complete every job in the company. “At least, a set of procedures for storing all critical processes in a location accessible in an emergency.”

Teaching employees how to adapt to new roles and different working conditions can prevent downtime during a disaster.

3. Equip your business with emergency supplies

Stocking up emergency supplies for your business can help minimize losses and save lives. Consider collecting necessities such as firearms, first aid kits, medicines, and food.

“You should always consider keeping shelf-stable food and water for all employees for three days. In the event of a disaster, customers may need to shelter in place,” Mazen said.

other Useful items include:

  • Disinfecting hand sanitizer
  • Antibacterial wipes
  • Gloves
  • mask
  • flashlight
  • Battery
  • Blanket
  • mobile phone charger

4. Establish cash reserves

This Financial impact The number of natural and economic disasters can be huge. Depending on the situation, you may need to refurbish the office, replace damaged inventory, refund the customer, or temporarily close it.

This is why “companies should keep cash reserves equivalent to three to six months of expenses,” Stephens said. “Three months is the minimum. Six months provides a healthy reserve that can be used to find unexpected opportunities.”

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Start by adding your monthly costs-including rent, utility bills, mortgage payments, loan payments, payroll and inventory-see where you can cut the expensesFor example, if most of your cash is used to pay a mortgage, see if you can sublet part of the building to another business. Or check your inventory to see if any slow-moving inventory is taking up your cash flow.

It takes time to build up cash reserves, but making strategic changes and sacrifices in the event of a disaster can pay off.

5. Prioritize your workforce

employee It is the lifeblood of any business, so it is vital to formulate policies to meet their needs during a crisis.

“In a disaster, your employees are most concerned about taking care of their families,” Stephens said. “Find ways to help them take care of their families so they can turn their attention to the company that helps you.” He added that this could mean providing work from home or providing childcare services.

It’s also a good idea to check your paid vacation, health insurance, and sick leave policies to see if you can provide more options or flexibility. For example, covering spouse health insurance or providing hazard pay to workers in difficult conditions can make employees feel valued and motivated during difficult times.

6. Diversify your products

Disaster can disrupt normal operations, but find a way to continue Cater to customers or customers Can help you make ends meet. First determine which area of ​​your business generates the most profits, whether it is products, services, or passive income streams. From there, brainstorming, you can redouble your efforts in the field or change it completely to solve customer problems.

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“Think outside the box,” Mazen said. “This may mean that you can use your resources to make adjustments in the market to meet the new demands of weathering storms. “

For example, if you run a physical stationery store, consider setting up an online store in case you can’t do business in person. Or, if you make a phone case, please consider what types of other products can be made with the same material.

Strong adaptability is the key to getting through difficult times and corporate development.

7. Focus on future reconstruction

Disaster is an opportunity to learn. Don’t bury your head in the sand. Think about strategies that work well in the face of disasters, including policies that protect employees or reduce financial losses. Matzen said, next, admit that you are not prepared for the field and ask yourself what you can do to change the result.

“At this stage, it is very important to fill knowledge gaps by consulting experts,” she added. Contact your accountant, talk to your lawyer, and ask your clients what they need from your business.

Preparing for disasters can help you sustain your livelihood, retain employees, and protect your profits. If you are currently suffering financial losses due to the coronavirus, check out our comprehensive COVID-19 guidelines and resources.

Disclaimer: Fundbox and its affiliates do not provide financial, legal or accounting advice. This content is for reference only and is not intended to provide and should not be used as a basis for financial, legal or accounting advice. You should consult your financial, legal or accounting advisers before making any transactions.

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