None of us can predict what will happen with the Coronaviruses, and specifically the current outbreak of coronavirus disease (COVID-19), but big business is already taking preclusions. Global event have been cancelled or postponed, like Mobile World Congress in Barcelona last month, sporting events, concerts and many international businesses are limiting staff travel. And of course, governments around the world are also controlling international travel.
As a small business, we don’t want to panic, but some good planning would be wise. As you know, if your business is dependent upon you, then you can’t afford to be ill. You most certainly keep a keen eye on the bottom line – and Coronaviruses, pandemics, severe weather incidents, like flooding, hurricanes, earthquakes and fires – can affect you financially.
Here are fourteen things you need to consider right now:
1. What is the worst-case scenario for your business if there is a global pandemic?
Think how your business can be affected. Looks for the risks.
2. What plans should you establish in the event that significant numbers of your employees cannot work due to illness?
How can you continue to provide great service to your customers in the event of lower staffing levels? Will your products or services be delayed in delivery? What does communication to your staff and customers look like in this situation? Do you need to communicate to other stakeholders such as vendors to reduce orders or shareholders to manage their expectations?
3. How do you handle illnesses with your employees now?
What is your policy on when someone is ill in regard to whether they come into the office? How should they communicate to their manager/subordinates? What is your benefit package in regard to sickness?
4. Can staff who usually work in the office, continue to work remotely if required?
While this may not be ideal most of the time, it may become a necessity, so what would it take to set them up to allow this?
5. Are your employees who can do their jobs remotely fully prepared to work from home for extended periods of time?
Communication is key. Keep them updated about how to prepare for long periods out of the office, get them the tools and materials they need and keep them updated regularly so they don’t become too disjoined from the office.
6. Do you have sufficient cross training in place if a key team member is unable to work?
If some of your team are unable to work for you, are there others that can cover their duties to keep the business operational? What are the critical job functions and how can you add redundancy there?
7. Do you have an adequate 'staff care' plan in the event families of staff are affected?
If your team is comprised of caregivers (parents of children, or children of the elderly) what provisions can you provide and how will that reflect on your business?
8. How might your supply chain be disrupted?
What if your suppliers are hit by a disruption to their delivery to you? How long until it becomes a situation that affects your customers? Are there alternative plans you should put in place in case your supply chain is disrupted?
9. Do you need alternative suppliers for resources/materials/services?
There are likely a number of other partnerships you need to run your company. Think through which are critical and what alternatives may need to be setup.
10. How will your business be impacted in the event of significant travel restrictions?
Do you or your team need to be on the road to sell, operationally or for any other reason? If agencies shut down public transport, how would that affect you and your team just getting to the office on a daily basis?
11. Can the business operate from remotely or from a different location?
If, for whatever reason, you can’t get to your office, is there a contingency in place for where team members can meet? If remote working is an option, now is the time to review what hardware and software needs are required such as more mobile phones, phone lines, web conference solutions.
12. Do you have plans ready for your business based on a possible scenario of losing 25%, 50%, 75% of revenues?
If your business starts losing revenue over the short term, what would that mean to you?
13. Do you know how many months of working capital you need, and do you have access to injection of cash if needed?
Cash flow may become an issue. How long can you survive without expected normal business levels of cashflow? What’s your relationship like with your bank? Can you set up lines of credit before you experience a disaster?
14. Have you reviewed your business disruption insurance and is it adequate?
Yes, some disruptions of your business can be covered by insurance. Make sure you are aware of them and have arranged adequate cover.
Beyond the list above, thinking in the immediate, what should you communicate to your team today in regard to Coronavirus? This first step to consider would be to keep your team healthy. Make sure they know how to do that:
Avoid close contact with people who are sick.
Wash your hands with soap and water regularly for at least 20 seconds. Alcohol hand sanitizers are also effective.
Try not to touch your eyes, nose, and mouth with unwashed hands.
Stay home when you are sick (except to get medical care).
Cough or sneeze into a tissue or your elbow. If you use a tissue, wash your hands afterwards.
Clean and disinfect frequently touched objects and surfaces.
For the latest updates, the CDC is a great resource.
Stay healthy out there – your health and the health of your team are directly correlated to your profits this year.