Originally published in Convenience World Magazine and Business Builders

Over the past few years, Australia has endured an onslaught of natural disasters. Floods, storms, cyclones and bushfires have devastated communities, and the impact on too many small and family businesses has been just as severe.

These warmer months can be peak season for natural disasters, just as for many small businesses, it can be peak season for revenue and vital to viability. 

Small and family businesses aren’t just the engine room of our economy, they’re also the lifeblood of our towns. When disaster strikes, they suffer directly through physical damage or indirectly when customers are focused on recovery and the local economy stalls. 

The impacts of natural disasters on small and family businesses can be devastating and can include damaged and destroyed assets, and reduced production and revenue streams. Recovery often takes a heavy toll on small and family business owners, their employees, and their local communities, especially in rural and regional towns. Small and family businesses outside of directly affected disaster zones can also be adversely impacted through the effects of any lingering environmental impacts, supply-chain disruptions, or reduced tourism.

As these impacts are difficult to predict, they may be overlooked in disaster planning and decisions around recovery assistance and support. While not a cure-all, better preparedness and resilience can help soften the blow and shorten recovery times for small businesses, enabling impacted businesses to get back on their feet quicker.

Small business owners are often community leaders. They are the first to volunteer, to lay sandbags, remove debris, fight fires, rebuild fences, freight feed and move stock and people to safety. Yet many do not apply the same attentiveness to their own business. That is where an up-to-date business continuity plan becomes essential. It allows small business owners to go through what they need to do, without having to rely on remembering something or finding an important document or contact details in the height of disaster, emotional distress or mental and physical fatigue. 

Our 2022 Inquiry into Small Business Natural Disaster Preparedness and Resilience found only one in four small businesses has a current business continuity plan. We also found that simple steps including sensible risk mitigation and bolstering resilience can reduce the impact of extreme weather and help businesses recover faster. These actions are not complicated but they do require planning and attention.

Natural disaster preparedness and risk mitigation are important parts of running a business. Planning and preparation makes a big difference when disaster strikes. Use our disaster response checklist to get started:

• Identify risks and potential threats – Consider impacts to your business including your physical assets, online systems, employees, financial arrangements, and of course, yourself.
• Insurance cover – Make sure your business insurance is up-to-date and that you are covered for the risks you identified in the first step.
• Back up and secure your data and documents – Some business records and data are irreplaceable. Make sure your data and records are backed up and stored in a secure location (offsite or in cloud-based storage).
• Emergency contact list – Compile a list of important names and contact information you might need in case of disaster. Make a paper copy that you can have with you in case you lose access to your devices.
• Review evacuation procedures – You should have emergency plans and procedures set out as part of your work health and safety (WHS) obligations.
• Set up an emergency management action team – Establish or clarify the roles of any other employees, so everyone knows what needs to be done and who is responsible.
• Create an emergency kit – This may include anything you might need in case of a natural disaster, including things such as hard copies of key documents, a first aid kit or fresh water.
• Rehearse your emergency management plan – Do this regularly to help identify items that may not have been originally considered.
• Plan for managing short-term financial obligations – Think about what can be done now, to manage the identified risks that may impact your business in the future.

Natural disasters are no longer rare. They can and do cause devastating destruction and lasting harm to the enterprising people who build businesses, employ locals and create vitality in our communities. As we head into the summer season, which typically brings with it Australia’s natural disasters, now is the time to prepare.

If you are a small business owner, start your natural disaster response and business continuity plan today. Think about what might throw your plans off course and what you might need to do about these setbacks. As hard as it might be to contemplate, even a health event concerning the proprietor or business owner ‘bread winner’ can have adverse consequences that reverberate well beyond the workplace. 

If you are in government, proactively factor in the central role and importance of local small and family businesses, including their wellbeing and recovery, into your disaster planning. And make sure support is timely, coordinated and practical. 

Together, we can ensure that when unpredictable and at times ferocious nature tests us, our small and family businesses and the communities they sustain, are ready to bounce back.