How Small Businesses Can Prepare for and Recover from Disasters

Recovering from Disasters: A Guide for Small Businesses

Natural disasters, economic downturns, and unexpected crises can wreak havoc on small businesses. The stakes are high: according to the U.S. Small Business Administration (SBA), about 90% of small businesses fail within two years of experiencing a disaster. However, the good news is that with proper planning and resources, recovery is indeed possible.

Understanding the Risks

Small businesses often play a vital role in their communities, offering essential services during and after crises. Unfortunately, they are also among the most vulnerable. Many lack the financial backing and support systems available to larger companies, making it challenging to weather storms, both literal and metaphorical. This is where organizations like SCORE, the nation’s largest network of volunteer business mentors, come into play, providing invaluable support tailored to the needs of entrepreneurs.

The Importance of Preparation

Preparation is key to ensuring a swift recovery. SCORE mentors emphasize the importance of having a comprehensive disaster plan in place. Bill Ehrlich, a SCORE mentor, advises business owners to store critical documents, such as blueprints and insurance policies, in secure, offsite locations. This foresight can expedite processes when disaster strikes, allowing businesses to focus on rebuilding rather than starting from scratch.

For example, Mark and Shannon Debner, owners of DPI Quality Custom Finishes in Cedar Rapids, Iowa, found themselves facing significant losses after a flood. They turned to SCORE for guidance and support, which ultimately helped them regain their footing.

Resources Available for Recovery

1. Free Mentoring: SCORE connects business owners with experienced mentors who specialize in crisis management. These mentors can offer insights based on their personal experiences, helping businesses navigate recovery challenges effectively.

2. SBA Disaster Loans: The SBA offers low-interest disaster loans, aiding small businesses to rebuild after declared disasters. SCORE mentors can assist with the application process, ensuring that entrepreneurs find the resources they need.

3. Online Resource Hub: SCORE's Small Business Resilience Hub provides online resources, including guides for continuity planning and checklists for preparing and recovering from various disasters.

4. Workshops and Webinars: SCORE hosts live and on-demand sessions covering a range of topics essential to disaster recovery, such as the ins and outs of SBA disaster loans and strategies for effective crisis management.

5. Localized Support: SCORE chapters across the U.S., including those in rural areas, tailor their support to meet the specific needs of their communities, ensuring that businesses receive relevant and timely assistance.

Turning Challenges into Opportunities

Recovering from a disaster is undeniably challenging, but it is also an opportunity for growth and innovation. During difficult times, decision-making can feel overwhelming, as Mark Debner explains: "You will face numerous challenges and must make quick decisions under pressure. Don't be too hard on yourself for any mistakes made during the recovery process."

No small business owner should face the daunting task of disaster recovery alone. With the right support and resources from SCORE, they can navigate the complexities of rebuilding their businesses and emerge stronger. Whether confronted with hurricanes, wildfires, floods, or supply chain disruptions, SCORE offers the necessary mentoring to help business owners not only survive but thrive.

Learn More about SCORE

To benefit from SCORE’s resources, or to learn more about becoming a volunteer mentor, visit SCORE.org. Since 1964, SCORE has provided assistance to over 17 million entrepreneurs, ensuring that small businesses have the guidance they need to succeed in the face of adversity.