Grow Your Business

Disasters can strike when you least expect it. Businesses are often vulnerable to sudden work stoppages, be it hastily declared holidays, natural calamities, or worker-related issues like employee strikes.

Lost manpower hours have especially become an issue in the wake of the recent natural disasters. Often, affected workers are forced to stay home, leading to a potential loss for your untended company.  The challenge is how to ensure continuous business operations amidst these unforeseen events.

Entrepreneur.com.ph talked to business owner Glen Durias of kiosk and installation manufacturer CartPlus Enterprises, as well as management consultant Richard Ongkiko on how entrepreneurs can mitigate the impact of such occurrences. Here are some of their tips:

1. Help the affected staff get back on their feet
Taking care of distressed workers may be one of the most vital tasks a business owner can do at this time. This is one way of ensuring your employees can get back to work sooner, and develop better loyalty to the company.

Durias, who heads a company that creates customized food carts and kiosks to franchise companies, says most of his employees were affected by the recent typhoons. Even his warehouse and factory were flooded. But despite the material losses, he set about taking care of his employees first.

"I personally went to their houses and distributed relief goods and some cash to tide them over. I believe all businesses live and die with their people, so I knew that helping them get back on their feet the soonest was the best way to get them back to working. Thankfully, it worked because a week after, we finished all our pending deliveries," he said.

Ongkiko echoes Durias' sentiments, adding that making people feel important is a vital way to cultivate a culture of loyalty and togetherness in a company.

2. Identify essential personnel
You know which components of your business are the most essential. If you have to operate with only a skeletal crew, you also have to spot which workers are most vital to keeping your business running. Durias, for example, personally fetched his leading craftsmen and carpenters to keep business going. He also hired some temporary workers to replace some of his distressed personnel.

"I fetched my employees who agreed to come in and at the end of the day I took them back to their homes just so our backlogs won't be that long. I also got some people to help out in the operations on a temporary basis, and even some family members manned some of our phones," he narrated.

Ongkiko's idea is to put a contingency plan in place even before a crisis emerges.

"Carefully study which staff members, materials, procedures and equipment are necessary to keep the business operating and establish procedures for succession of management," he said.

 3. Let your customers and suppliers know about your situation
Being transparent with your suppliers and customers becomes even more essential in the face of an emergency. Diligently call up creditors, clients, vendors, and other business associates to let them know about your situation.

Durias started making phone calls to suppliers in the middle of the typhoon. He did this to let his business associates know that he was on top of the situation, and assure them about he would get the business up and running in the shortest time possible.

"I called clients to let them know that their orders were going to be a little bit delayed, but would be delivered nonetheless. When assessing the damage to my factory, I asked a bank representative to accompany me so they can also document the damage themselves. It helps to be very transparent in these kinds of situations, because business relies on good relationships," he said.

"Be honest with your employees about the amount of projected losses you may have incurred, then set expectations and work levels. For small businesses with limited capital, hiring extra employees maybe tough to accomplish, especially if you're hard hit. The key is maximizing the employees you have at your disposal at the moment," advised Ongkiko.

Durias drastically altered his workflow when only five of his 20 workers showed up for work after the storms. Whereas before he had teams of people working on separate projects, he assigned all five employees to working on one project at a time and promised them overtime pay.

"I impressed upon them that finishing our projects was vital to staying in business. I also continued to pay the employees who couldn't work and gave our 13th month pay early. That way, the workers I had with me didn't feel that they were profiting at someone else's expense. It assured them that everything was being done on the level," he said.

Disasters and emergencies are a natural part of doing business. Being prepared and hitting the ground running to mitigate the immediate effects of such occurrences can help you steer clear of the dreaded phrase: work stoppage.