Is your business prepared for a natural disaster?

Australia’s small and family businesses are the engine room of our economy and the lifeblood of our neighbourhoods and towns. These warmer months can be peak season for revenue and vital to viability, just as it can be peak season for natural disasters. The impacts can be devastating to their business, livelihoods and local economies. Preparedness is essential. Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, shares practical steps to prepare.

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.

For many, the warmer months are not only peak season for revenue but peak season for natural disasters and when disaster hits, the consequences can be catastrophic for viability.

When disaster strikes, recovery takes a heavy toll

Small and family businesses are more than the engine room of our economy. They are the lifeblood of our neighbourhoods, towns and regions. When disaster strikes, they suffer directly through physical damage or indirectly when customers focus on recovery and local economies stall. The impacts of natural disasters on small and family businesses can be devastating and can include destroyed or damaged 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 supply-chain disruptions, reduced foot-traffic and tourism, or the effects of any lingering environmental impacts.

These impacts can be difficult to predict, and 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.

It’s the season to prepare

Small business owners are often the first to step up when disaster strikes. They volunteer, lay sandbags, clear debris, fight fires and help move stock and people to safety. Yet many do not apply the same attentiveness to their own business. That is where a current business continuity plan becomes essential. It helps owners act decisively without relying on memory or scrambling for documents during a crisis.

Our 2022 Inquiry into Small Business Natural Disaster Preparedness and Resilience found only one in four small businesses has a continuity plan. Simple steps such as risk mitigation and resilience measures can reduce the impact of extreme weather and speed recovery. These actions are not complicated, but they do require forethought and planning.

Natural disaster 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.

Supporting recovery and resilience

Natural disasters are no longer rare. They cause lasting harm to the enterprising people who build businesses, employ locals and create vitality in our communities. As we head into summer, now is the time to prepare. If you are a small business owner, start your continuity plan today. Think about what could derail your operations and what you can do now to manage those risks.

If you are in government, 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 nature’s unpredictability and ferocity tests us, our small and family businesses and the communities they sustain, are ready to recover and thrive.

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