7 ways to cope with an unforeseen closure of your business

A natural disaster blows the roof off your business. Cybercriminals take down your computer systems. An epidemic literally makes all your employees sick at the same time.

We cross our fingers hoping it never happens to you, because the chances are slim. But still: sooner or later, your business will face tough challenges, in the worst case scenario forcing you to close down unplanned. How do you avoid playing panic soccer or even letting such a setback kill your business?

By preparing in advance for the "unpreparable". Today.

Here's how to ensure the continuity of your business when disaster strikes

One hundred percent preparedness for every possible setback is impossible. But you can work on the flexibility of your business, making sure you can adapt quickly when circumstances suddenly change. Without pretending to be complete, we recommend that you start thinking about these aspects:

How does your company respond when disaster strikes?

Whatever form this fate takes - your company building becomes unusable, you yourself are suddenly incapacitated, a crucial machine fails ... you will thank yourself if you have a plan of action ready to go.

So take the time to create a disaster recovery plan that defines the procedures to follow for various crisis situations. What situations would constitute a real crisis for your company? What steps do you have to take and in what order? What aspects do you all need to think about at such a time? Who takes what responsibility?

It is also interesting to distinguish between what you need to address immediately and what you need to do in the medium term. How do you get your business back on track quickly, able to sell and bring in revenue, even if in a different way than you are used to?

Furthermore, your plan of action includes a crisis communication plan, in which you have mapped out how you are going to communicate and who, if anyone, you need to inform (employees, customers, suppliers, shareholders ...).

Can your commercial building withstand a few knocks?

In Belgium, too, we are feeling the climate change more and more strongly. It is therefore a good idea to check every few years whether your industrial building is still solid. More rain or long dry periods can damage your building more quickly or even cause it to subside.

Realize that a major natural disaster does not have to happen to spell disaster for your business. Even an ordinary storm can be severe enough to get you into trouble. So be sure to check out this list tips to prevent storm and water damage.

Are your digital systems robustly secured?

Cybercrime or an out-of-control "bug" in your server or computers can bring your business down virtually. Investigate where possible "leaks" are or are likely to occur and waterproof your systems as soon as possible.

In addition, set up a procedure to ensure that you continually back up your company data. And establish a plan to restore your databases, should something go wrong there. Important: also make your employees aware of these dangers and inform them on how to prevent problems, e.g., by raising awareness of the risks of smartphones and other smart devices.

Are you spreading your risks enough?

Don't put your eggs all in one basket, says the folk wisdom. And that applies in several areas: make sure your success does not depend on one or a few customers, suppliers or distribution partners. Because if one of them unexpectedly lets you down, or has to let you down, your house of cards collapses with it.

Does your business also run without a physical location?

Suppose for some reason you can no longer get into your permanent business building or a significant part of it, how do you keep things running? Can all your employees telecommute ? Can you easily reach and manage the people who don't do office work?
If you think about your options now, you will be much more smoothly operational again when you suddenly find yourself in such a situation.

Do you have a financial cushion?

Money has to roll, but a proverbial sock under your mattress can't hurt either. Even in your financial plan, you'd better keep in mind that unexpected expenses or a sudden drop in income could crop up. Set aside a buffer in a savings account or in a financial product where you can release your money quickly.
With the right insurance for your business you also protect your income. For example, business interruption insurance boosts your income when you have less or no turnover due to damage. And insurance guaranteed income pays your salary as a business manager if you become disabled.

Can your employees handle change?

Because if your company is suddenly unable to operate or has to do so completely differently, everything will change at once for your employees as well. If you install a corporate culture in which every employee is allowed and dares to take responsibility, your company will be able to adapt more smoothly to difficult circumstances.

Such a resilient corporate culture will help you through a crisis, but it will also make it easier for your company to surf the waves of rapid social, technological and economic change.

Bonus tip: regularly update your insurance policies

Everything is constantly changing: your company, your personal situation, the context in which you work... So let your insurance evolve with the needs of your company. We are happy to check for you whether an update is needed here and there.