Plenty of things can affect the value of a business, and the one that most concerns the NEBBI is a company’s assets, particularly machinery and equipment. But did you ever consider how the weather and emergency preparedness can affect a business and its value?
Small businesses are particularly vulnerable to the natural disasters brought about by climate change, mainly because most don’t have the savings to help them withstand a disaster and many operate out of one building in one geographic location. Flooding, power outages, rising insurance costs, and an inability of employees to reach their place of employment can have devastating consequences for a small business. In fact, studies have shown that 25 percent of small businesses that experience a shut-down after a natural disaster are unable to re-open.
And it’s not only businesses in areas vulnerable to flooding or wildfires that can be affected. Businesses across the country that work with businesses located in natural disaster zones can be affected by supply chain slow-downs.
If your business is located in an area that experiences extreme weather events or depends on businesses that do, putting emergency preparedness plans into place is key to protecting your company’s value. Know the economic impact a natural disaster can have on your business. Have plans in place that will allow your business to continue operating in the event of a disaster. Help educate your community on recovery from a natural disaster. In order to protect your business, you must first recognize its vulnerability.
Don’t allow a natural disaster to destroy the precious value of your business. Start planning today.
TheNEBB Institute endorses and strives to observe the highest standards of professional ethics to preserve the public trust inherent in the professional appraisal practice. The Institute provides initial and monthly comprehensive education, ongoing support, and a dynamic international network, and certifies professionals in the art of machinery/equipment appraisal and brokerage.
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