Post - April 08, 2020 | Reading Time - 5mins

Effects Of Natural Calamities On Business Growth And How To Prevent Loss During These Situations?

The coronavirus crisis has taken the entire world by surprise, with business organizations are finding it difficult to cope up with economic decline due to COVID-19 pandemic, as such global crisis has never been witnessed in the modern peacetime history, and it has crippled the business world to an extent.

Whether if it is a large or small-scale business, Natural calamities are the most disastrous events and even if it occurs at one corner of the world, it creates a negative ripple effect across the globe and every life gets affected by it.

As per the UN report, India suffered a huge economic loss of USD 79.5 billion due to climate-induced disasters or natural calamities in the last 20 years, this report highlights the influence of extreme weather changes on the global economy.

Large-scale, well-established businesses might be able to handle natural disasters in a better way, as they have more resources available to restore their business operations.

   • Occurrence of Natural calamities have increased due to unpredictable and drastic weather changes. It is recommended to design a disaster plan beforehand to prevent your business from natural calamities.

It is important to study the risks and impact of natural disasters on your business growth strategies. Invest in business insurance to protect yourself from financial losses and negative economic impact during the times of crisis. Have a glance at this, 10 Things successful entrepreneurs do for their business!

   • Global economic losses caused due to natural calamities from 2000 to 2019 was around 232 billion U.S. dollars annually.

   • Natural disasters create a severe impact on the entire world and its economic growth.

   • All the Small business suffers more damage and financial loss due to natural calamities.

   • Keep your Financial plans ready to prevent loss of capital and resources.

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How Natural Calamities Can Affect Your Business Growth?

• Causes Severe Physical Damages to the Assets :

The physical damages caused to the business are more visible. The location of the business can be severely damaged due to natural calamities like floods, earthquakes, hurricanes, etc, causing heavy structural damage to the building and the on-site equipment.

• Limits the Transportation :

Floods, heavy rainfalls, earthquakes, wildfires, any natural disaster can lead to disruption in transportation, causing your business to terminate shipping orders or receiving the supplies. It can cause delays in transportation across the region or country for several days. This could obstruct your business operations and generate losses.

Natural calamities can create scenarios where your employees and customers could not travel, that may obstruct your business growth indirectly.

• Heavy Blow to the Infrastructure :

Natural disaster occurring in some other region can indirectly hamper your business operations. Storms or Floods can cause electricity outages, destroy communication network, territorial water shortages, cell phone towers and Internet connectivity. Natural calamities causing infrastructural loss can lead to major economic loss for the business, damage the physical as well as logical assets.

• Decline in Sales :

As we are witnessing now, COVID-19 pandemic and the complete lockdown for an indefinite period in every place has brought catastrophic results for the business industries. The customer base located in coronavirus affected area have stopped buying product/services for some time and businesses are bound to bear this loss.

Check out this, Do Not Let Corona Virus Affect Your Business Try Digital Marketing!

The sales have dropped drastically due to the coronavirus lockdown in the whole country. Every natural disaster results in decreased sales and business loss.

   • Natural disasters causes Physical damage to business assets, which takes time to get repaired and renewed.

   • It destroys the infrastructure causes power outages, water shortages, disrupts communication, Internet connectivity and logical assets remain at risk.

   • Disrupts travel and transportation, delays shipping orders. Customers don't go out to buy your products/services.

   • The sales drop, the customer base also get hit by the economic losses leading to a decrease in sales.

Disasters, whether if it is Natural or Manmade, socio-economic life gets affected very badly. It is challenging to run a business, promote the product line and to design a short-term or long-term business plan for increasing sales and leads.

Unpredictable natural disasters can ruin your growth strategy. Determine and design a rescue plan with the help of your risk managers to protect your assets and prevent financial loss. Let's see what we can do prevent the loss and resources from getting destroyed completely.

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How to Prevent Your Business from the Losses to be caused due to Natural Disasters?

Avoid waiting for the 11th hour, take a hard look and identify the vulnerabilities for your business, the possible worst-case scenarios that may obstruct your business operations, analyze your assets and plan out your strategy to cope with the unfortunate conditions and prevent the losses before time.

Once you are aware of the problem areas you can easily design a solution to save your business, invest your efforts and resources at the right place to reduce the consequences of the natural calamities.

It is difficult to predict the possible crisis and problem leading to downtime, but you must be prepared and make your business robust to withstand, survive and thrive in the calamity.

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1. Set Up Strong Communication Channel :

Whatever happens, you must be able to communicate with your customer base from anywhere and anytime. Start investing in building your strong online repute over the internet. Design a secured website for your business organization with SSL certification from a professional website designing company. Have a glance here to understand its importance for your business growth, Does Your Website Needs SSL?And Why Professional Web Designing Company Is A Better Choice?

Starting building genuine rapport with your customers from today. During the times of disaster, your services might not be able to work efficiently and reach your customers.

To prevent your customers from finding other alternatives or from choosing your competitors you need to build strong relations with your customers. For that to happen, you need to have a Responsive Website that is a mobile-friendly website that can ease your communication with your audience. On your Professional Business Website you can provide authentic details about your business, products or services and earn credibility on the internet.

Invest in Social Media Marketing to leverage all the Social Media channels to increase the interaction with your audience and to Increase Customer Engagements. Social media is the best place to build warm relationships with your customer base, they will remember you and your products/services during the times of crisis also. Check here, Which Social Media Tricks Will Excel Your Business? And How Increasing Customer Engagement Can Boost Up Growth Of Your Business?

Whenever a natural calamity affects your business in any way, it is the most crucial time to let your customer base know about the disturbances caused in the services and let them know about difficulties you are currently facing.

Having a strong communication platform like websites or social media channels where you can find most of your customers. For instance, Facebook, you can easily connect with your audience and deliver a detailed message explaining your current situation, what you are doing to cope up with the disaster and meet the customer expectations.

If in case there is any delay in shipping orders, you have a reliable approach to communicate with your affected customer base and explain your plan of action. Communicating the important things clearly to your customers is the most appropriate approach to engage and retain your customer loyalty during tough times. Execute a wide assessment of your business procedures, strengths, weaknesses and vulnerabilities to design the most effective plan and make more informed decisions to save your business.

Increase your Reach by investing in Digital Marketing Services. Why? Increasing brand awareness for your business in your good times will help you to establish your business as a reliable business organization. Your customers and the target audience will come to know about you, your business, products and services. Don't wait for the things to happen, start promoting your business before your competitors reach your customers, Use Digital Marketing for your business growth. Have a glance at, How Digital Marketing Can Boost Up Your Business? and 8 Tips For Making Your Digital Marketing Strategy Successful! For best results! It will help you in continuing your growth process despite of any natural disaster.

   • Build strong relations with your Customer base.

   • Communicate through your professional website.

   • Increase customer engagements on Social media channels.

   • Invest in Digital Marketing to increase your brand awareness beforehand.

You can Ask our Experts what they have in for You- Request a Quote!

2. Store Your Logical Assets in Cloud Storage :

For any business organization, the customer data and the operational data is one of the most valuable asset. The offsite storages are the websites available to render protected storage for your data. Some websites likewise lend space on their hard drives through which you can download your data using the internet for backup storage.

You must safeguard the data and other logical assets as it is the foundation of your business success. That data can be your payroll, invoices, billing, customer details, customer payments information, stocks or inventory control. Businesses who have no backup plans to safeguard their data are at a major risk.

The most significant thing you can do for the security and growth of your business organization is to get your data mirrored and backed up. Utilizing Cloud-based storage services is a better option to secure your data from loss, it is economical and efficient too.

   • Safeguard your valuable data using offsite storage facilities.

   • Keep your logical assets secured on cloud-based services.

   • Keeping your data mirrored and backed up will save you millions.

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Be Accessible from Remote Areas :

If your business location gets affected by a natural calamity, you must have a strategy to continue your work. Hence, be easily accessible. How? You can set up remote access capability and allow your key employees to do the work from home.

This is the best approach to carry on your business processes at your business organization and continue your business growth. Ensure that your employees possess a laptop or a computer, train your employees for such catastrophic events and give knowledge about accessing the company network from remote areas.

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   • Build strong network connectivity for your business organization.

   • Train your employees to work from home efficiently.

   • Set up remote access capability for your business.

   • Ensure your employees have a laptop or computer.

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Wrapping Up!

If you are a small-scale or large-scale business organization you must perform a thorough assessment of your business processes and formulate business continuity plans to render information on how your business operations will be restored and start functioning after a natural calamity or an operational disaster. Employing digital marketing services for your business growth will help you to overcome downtime.

Your business continuity plans must include detailed guidelines required for operational restoration based on every kind of natural calamity or operational disaster that may occur anywhere anytime. The business Continuity plans cover all the detailed guidelines, safety instructions for employees and training managers to recognize what are their responsibilities or duties during such catastrophic events to overcome any kind of calamity, loss and continue to grow. You can contact us to get more insights.

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