Preparing for the Unexpected

Ok, so the title of this blog entry is kind of an oxy-moron, I will concede that to you before I go any further. I also think I should interject that I am a recent transplant to the great state of Kentucky (oops, I mean “Commonwealth” of KY!) from the Florida Peninsula we I spent the majority of the last 27 years. I say that because the subject of this blog is going to have to do with the snow that has been falling the last couple of days and the problems that these acts of God can bring our way.
In my previous home we have had more than enough experience with bad weather. You can not even say the names of the hurricanes that blew through 5 years ago without someone looking at you with an evil eye, and any children that have those names are in danger of being pelted with dodge balls every day in gym class. Wait a minute, they outlawed dodge ball in schools now didn’t they? Either way, they are named unfortunately. One thing we did learn from those storms however is that no matter how well you think you know your business, its patterns, and your seasonality issues- when it comes to weather phenomenon we have no chance to add that into our projections for the year.

I take that back. You can add them in but there is a double edge sword at play. If you add in time missed for bad weather and that weather does not occur you could be figuring way too low and hurt the business as a result. Then again, if you don’t account for bad weather and you paint the picture of rosy days ahead you could crash and burn hard if your business is interrupted for any great length of time. When the “storms whose names must not be spoken” passed through Florida nobody was prepared for the problems they would cause. We had been given those hurricane forecasts year after year ever since Hurricane Andrew destroyed south Florida and year after year we never had any real threats so people got rather complacent about preparing for them. Once those storms hit though many business never reopened. It was a matter of the money it could cost to rebuild; it was insurance fights, while still other businesses did reopen in a damaged or limited state which led to other more costly problems down the road. So why am I talking about Florida and the problems they have when we are all in Kentucky now? Because the only thing different is the state and the weather phenomenon. The rest, the after effects, are all the same if you are not prepared.

When I moved here in late September I was told about the ice storm that really shut down the state (shoot, Commonwealth! I may never get used to that) in 2008. Some areas where affected for up to a week, others even longer. This year before the “first real snow of the season” hit in the last two days, parts of Kentucky had already experienced power outages that left tens of thousands of people without power, and that was not even a result of any type of huge storm system. The question that you have to ask yourself is this: Will my business be ok if I am out of commission for a week or two due to circumstances beyond my control? If the answer to that question is “No”, then you have to start preparing yourself just in case don’t you? Florida dodged any major disasters for over a decade, and then in back to back years where hit with numerous hurricanes. The same could easily happen to Kentucky and your business as well with snow, ice, or even tornados. The one thing we do know about the weather is that you can predict the next couple days you cannot predict year to year or even month to month.

By now you are probably thinking: Can you just give us some solutions? Sure! There are a few things you can try to line up in case you find yourself in a tough spot. First, ask your bank about a line of credit if you do not already have one in place. These can be a huge life saver for you should you experience any downtime. You can still pay your bills, and even employees for time lost and then pay back the bank. Of course you better know if you have the room in your cash flow projections to support a pay back of this type or you could be in even deeper trouble. Another option would be to call your insurance company (I know, I know- nobody likes to do this- ever!), and ask them about any type of “business interruption” insurance. There are several types of this type policy that is designed for just this type situation. The last option would be to move your business to a place that never has any weather related issues, like Arizona (never mind, they have heat waves that put a strain on the power grids)- I meant someplace like Tennessee (again, never mind- tornado alley), how about California (earth quakes AND wildfires- double whammy!). On second thought, why don’t you just stay where you are now and find a way to prepare yourself…just in case!