We have officially entered the Atlantic Hurricane season which runs from June 1st to November 30th. For Texas, the season peaks around August and September. Colorado State University (CSU) researchers are expecting 2023 to be a near-average year for hurricane season forecasting 15 named storms and 7 hurricanes, with 3 of those being major hurricanes. For reference, the averages from 1991-2020 were 14 named storms and 7 hurricanes, with 3 of those hurricanes labeled as major hurricanes.

Forecasters indicate an El Nino development is imminent in the next few months due to slightly above-normal water temperatures in the Pacific. This could potentially be a good sign for hurricane season because El Nino’s generally suppresses the Atlantic hurricane activity. On the contrary, waters across the Atlantic have risen anomalously over the past few months, which usually lead to a more active hurricane season. If a robust El Nino forms, it could help counteract the above normal water temperatures in the Atlantic. Regardless of the outcome, preparation is key.

Just as you prepare your home for hurricane season, you also need to prepare your business.

After Hurricane Harvey in 2017, the Houston Chronicle reported that nearly 50% of the businesses in just the Lake Houston area alone were damaged in some way. A more horrifying statistic from the Federal Emergency Management Agency states that 40% of small businesses that close due to a natural disaster will not reopen. The SBA takes this one step further by asserting that of the businesses that reopen, 67% will not remain open after two years.

Having a natural disaster recovery and business continuity plan in place BEFORE natural disasters strike is critical for business survival. Can your business operate without computers, copiers, files, inventory, or special equipment (e.g., x-ray equipment, cash register, credit card readers), gas, power, water, internet, or telecommunications? If your business was down for 1 to 2 days or more, what costs would you incur?

  1. Lost revenue and productivity.If your business is down, you are unable carryout everyday business items that generate revenue. This is true if you provide a good or a service.
  2. Negative brand reputation.Lack of preparation in the event of a natural disaster could have your customers asking: ‘if you can’t handle disasters well, what else aren’t you handling properly?’
  3. Employee frustration.Employees will carry the burden of the extra hours and stress of getting things back together and failing to prepare would cause this to take longer. This may also impact how they view management, causing respect to be lost.
  4. Helping the competition.Your customers’ needs do not stop while your business is down. If your business is down, but your competition is up and running, you could lose customers who will go to where their needs are met.

Failing to plan for a natural disaster could carry both immediate and long-term consequences for your business. If you would like to find out if your business can take on any natural disaster, click here to book a 10 minute meeting with us!