Preparing Your Small Business for the Hurricane Season

By Carol McLaurin, Director of Strategic Initiatives and Partnerships

North Carolina has seen its share of impacts from hurricanes in both its coastal and inland counties. Since 2003 alone, our state has had major disaster declarations from more than six named storms including Isabel in 2003, Sandy in 2012, Matthew in 2016, Florence in 2018, Dorian in 2019 and Isais in 2020.

Historically, small businesses face significant challenges after a hurricane. According to FEMA, approximately 40% of small businesses do not reopen after a disaster, and an additional 25% fail within the year following the disaster​. This high failure rate underscores the critical importance of preparedness and having a solid disaster recovery plan in place.

Why is it Important to Prepare for a Hurricane?

Small businesses should prepare for hurricanes and other storm outages for several critical reasons:

1. Minimize Financial Loss: Hurricanes can cause significant property damage, resulting in costly repairs. Preparation can mitigate these expenses by safeguarding assets and infrastructure.
2. Ensure Business Continuity: Effective preparation can reduce downtime. Having a plan in place allows businesses to resume operations more quickly, maintaining revenue flow and customer relationships.
3. Protect Employees and Customers: The safety of employees and customers is paramount. Preparing for hurricanes ensures that safety protocols are in place to protect everyone involved with the business.
4. Preserve Data and Records: Hurricanes can destroy physical and digital records. Backup systems and data protection measures ensure that critical information is not lost.
5. Reputation Management: Businesses that handle disasters well can enhance their reputation for reliability and care, which can be beneficial for long-term customer loyalty.

How Should a Business Prepare for a Hurricane?

By taking proactive steps, small businesses can better withstand the impacts of hurricanes and recover more swiftly. Here are the most important steps for you to take in order to prepare your small business for a hurricane or other weather-related impacts:

1. Create a Disaster Plan:
   • Develop a comprehensive emergency response plan that includes evacuation routes, communication protocols, and procedures for protecting assets.
   • Ensure all employees are familiar with the plan and conduct regular drills.
2. Secure Property and Inventory:
   • Reinforce windows and doors, and consider installing storm shutters.
   • Move valuable equipment and inventory to a safe location, preferably higher ground or a secure storage facility.
3. Backup Important Data:
   • Regularly back up all critical data and store it offsite or in the cloud.
   • Ensure that backups are easily accessible and can be restored quickly.
4. Establish Communication Channels:
   • Set up a reliable communication system to keep in touch with employees, customers, and suppliers during and after the hurricane.
   • Keep contact information for all key personnel and stakeholders up to date.
5. Review Insurance Coverage:
   • Verify that your business insurance policy covers hurricane-related damage, including wind, flood, and business interruption.
   • Consider additional coverage if necessary and keep a copy of the policy in a safe place.
6. Plan for Business Continuity:
   • Develop a continuity plan to maintain critical business functions during and after a hurricane.
   • Identify alternative locations for operations and ensure remote access to systems and data if needed.
7. Protect Financial Records:
   • Safeguard financial documents and records by storing them in waterproof containers or digital formats.
   • Keep a record of all assets, including equipment and inventory, to facilitate insurance claims.
8. Establish Vendor and Supplier Contingencies:
   • Communicate with suppliers and vendors about their disaster plans and establish backup suppliers if necessary.
   • Maintain a list of alternative suppliers in case regular supply chains are disrupted.
9. Communicate with Customers:
   • Inform customers about potential disruptions and provide updates through various channels such as social media, email, and your website.
   • Set up an automated response system to keep customers informed during the hurricane.

Contact an SBTDC office near you for assistance with your disaster preparedness. Or visit our Recovery and Resiliency page for more information, links and resources.

Other National Preparedness and Resiliency Resources

• ASBDC Small Business Resiliency Guidebook – A comprehensive set of tools to help you assess risks and make contingency plans.
• Ready.gov/Business – Ready Business assists businesses in developing a preparedness program by providing tools to create a plan that addresses the impact of many hazards.