June 18, 2024

Storm damage to small businesses – advice for SMEs

2 min read

While cleanup activities continue across large parts of the Western Cape following devastating storms, many business owners are counting the cost and wondering how they will start trading again. The rain and winds that hit the province last weekend caused damage to several buildings while the impact on roads and infrastructure has been just as disastrous.

Small business owners should try to build an accurate picture of how badly the storm damaged all parts of their organisation and then plan the next steps. This picture should also keep in mind your entire supply chain as well as service providers and workforce, according to SME banking platform, Lula.

“Chances are very high that you will need a major cash injection to get going again. But you need to know exactly how much funding is required to restock your storeroom, fix damage to the building, or even find new suppliers while existing ones are themselves trying to recover,” says Lula’s chief marketing officer, Tom Stuart.

Communication is another important step of the recovery process, he adds. “Make sure your staff members know what the storm’s damage means to them needing to report for work, and give your customers an update on whether they can expect to receive any goods or deliveries from you for the immediate future. Everyone will understand that you are going through a tough time, but open and honest communication from your side is certainly expected.”

Stuart says planning can go a long way to limiting the interruption caused by the kind of storms witnessed by the province last week.

“Any responsible business owner will have proper insurance policies in place that can pay out when normal operations are impacted because of adverse weather. If you haven’t considered this kind of policy, we would recommend you contact an insurance broker today so they can give you good advice on what would best work for you and your business.

“We wish everyone the very best during this difficult time and we look forward to everyone reopening their doors as soon as possible.”

Image credit: jannoon028/Freepik

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