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The wildfires that ravaged Los Angeles spread to more areas in Southern California, affecting residents and businesses alike. The total economic cost of these wildfires has now surged beyond $250 billion (LA Times), making it one of the most devastating natural disasters in U.S. history with far-reaching consequences and significant disruptions, such as affecting supply chains and labor supply.
With over 14,000 structures damaged or destroyed (CNN) and, at one point, 200,000 people (NBC News) were ordered to evacuate. The impact on businesses has truly been deeply felt, with some facing irreparable loss. In this article, I am sharing a quick action plan and a checklist of what you could do to limit damage, minimize downtimes, generate revenue quickly, and to pivot into starting your recovery journey.
- Urgent Actions: Securing Safety and Evaluating Damage
Document the damage thoroughly with photos and videos for insurance claims. Secure the property to prevent further losses, such as boarding up windows or covering damaged areas.
Next, initiate the recovery process by filing insurance claims as soon as possible and working closely with an adjuster. Fortunately, there are resources available for small business owners affected by this disaster, including SBA disaster loans, local grants, such as the Los Angeles County Relief Fund, and FEMA if eligible. If you’re facing financial strain, negotiate with landlords and lenders for rent reduction or payment deferrals to ease the burden during recovery (Los Angeles County Supervisor).
- Quickly Shifting to Online Communication and Remote Operations
Small businesses must quickly adapt to remote operations
to maintain productivity, with the LA fires causing widespread disruptions. Keep your team connected through available tools, such as Slack, Zoom, or Microsoft Teams, and establish clear work schedules to ensure smooth collaboration. Store critical business documents on cloud platforms like Google Drive or Dropbox, so your team can access essential files from anywhere.
Keeping customers informed is just as crucial during this transition. Update your website with a banner or pop-up explaining service changes, and send email and social media updates outlining your recovery timeline. Set up auto-replies on emails and phone lines to provide quick responses, ensuring clients know how to reach you despite temporary closures.
- Pivoting to Minimize Downtime and Maintain Revenue
Businesses that cannot utilize their physical locations can transition to digital sales to help keep revenue flowing. You can set up an e-commerce store on a platform, such as Etsy or Shopify, or sell directly through your website. Publishing helpful content educating customers about the use of these products or even maintaining them can boost engagement. Businesses offering expertise may consider virtual consultations, workshops, or coaching sessions. Selling digital products, gift cards, or subscription services can provide immediate financial support while businesses rebuild.
It is crucial to stay connected with your customers and keep them engaged during this time. Social media platforms such as Instagram, Facebook, or TikTok Live help businesses engage directly with their audience and update them on their recovery. To further leverage your social media engagement, present limited-time offers or discounts to encourage online purchases and maintain cash flow. Furthermore, you may partner with local influencers and fellow business owners for cross-promotions to help expand your reach and drive sales.
Reopening immediately may not be an option for many businesses. You may launch pre-order campaigns or set up crowdfunding to raise funds for recovery. If possible, offer curbside pickup or local delivery to continue serving customers. You may also offer online courses, memberships, or exclusive content to help provide a steady revenue stream while working toward reopening if your business is service-related.
Consider alternative ways to generate income if reopening immediately isn’t an option. Launch a pre-order campaign or set up crowdfunding to raise funds for recovery. If possible, offer curbside pickup or local delivery to continue serving customers. Online courses, memberships, or exclusive content may help provide a steady revenue stream for service-related businesses while you work toward reopening. Selling equity in the business to get immediate cash flow for recovery efforts may be an option, such as committing future royalties. A note of caution for businesses: making emotional decisions or major business decisions under stress may lead to regret. Take a step back, seek advice, explore all your options first, and plan thoroughly to ensure your recovery efforts are not wasted.
- Engaging with the Community and Building Loyalty
Engaging with your community is essential for rebuilding after the LA fires. These efforts benefit the community overall by restoring the vibrancy and business viability of your local area and developing community resilience. Launch a “Let’s Rebuild Together” campaign to encourage local support and collaborate with neighboring businesses for cross-promotions. Share your recovery journey through social media stories, blog posts, and local news outlets to keep customers informed and invested. The synergy and the enhanced community resilience developed leads to long-term benefits such as stronger social connections, better disaster preparedness, promoting economic stability, and mitigating the impact of future crises.
- Preparing for the Future: Lessons from Past Disasters
Past disasters have taught us how businesses can survive and thrive after the LA fires. For instance, after Hurricane Katrina in 2005, financial institutions with multiple types of data backups and timely backups could recover applications and resume operations efficiently, while community efforts helped businesses rebuild. Similarly, the 2018 California wildfires underscored the necessity of comprehensive disaster preparedness and adequate insurance coverage to mitigate financial losses. Lastly, as we learned during the COVID-19 pandemic, businesses that embraced e-commerce and virtual services can demonstrate greater resilience or even thrive. Today, project management tools are available to you, such as free versions of Asana and Odoo, where you can document your tasks as well as store vital information moving forward. These key sets of information, including lessons learned and well-tested steps, will help turn your recovery efforts into an opportunity to grow and develop action plans in case another disaster happens.
Takeaways: Lessons in Resilience – Rebuilding After Disaster
Small businesses affected by the recent LA fires can bounce back after quick action, resilience, and adaptability. Preparing for recovery and minimizing operational downtime is important in surviving the staggering economic losses, including business disruptions.
The past has given us valuable lessons that help businesses regain their footing more efficiently and ensure long-term sustainability. Though the challenges may be great, the people of Los Angeles have always been resilient and are known for reinventing this vibrant city.
Although challenging in so many ways, this recovery journey strengthens our resilience and equips us for a more prepared and successful future.
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