My hometown recently experienced an intense late summer
heatwave. With temperatures hovering at a record-breaking 111 degrees one
afternoon, I realized that I was the lone person outside at the normally busy
community college campus where I teach.
The people I did see outside as I drove home looked
understandably weary and stressed by the heat. As I stopped to pick up a few
things to prepare a light no-cook supper for my family, I noticed the trashcans
outside the store were overflowing with cold drink cups.
Inside the sparsely populated store, I saw some people
grabbing watermelon and ice cream. A few others were at a freezer pulling out
bags of ice.
There is no doubt that extreme weather affects business. On
that day, stores selling cold drinks and ice were bustling, while most retail
stores, restaurants and other businesses were slow.
Retail businesses usually see a significant drop in traffic
during heatwaves and cold snaps or during stormy weather in any season. Even if
your business does not count on in-person traffic, your employees may not be
able to get to work or stay as engaged in their work during bad weather. In
addition, your supply chain can be significantly interrupted by extreme weather
conditions that cause icy roads or delayed air traffic.
Since even the best weather forecaster cannot fully predict
how weather swings will affect a business during an extreme weather event,
there are some steps you can take to keep your business afloat during bad
weather.
Create a weather communication plan. Be clear about setting
expectations and communication guidelines for your employees during bad
weather. If you have to close your business due to a weather emergency, you
don’t want some of your staff attempting to make it into work. Notify them via group text or through your
website of any closings or delays in operation.
For the same reason, have clear communication with your
vendors and suppliers about what happens during unexpected weather-related
events. While the weather may be a surprise, the way you handle the situation
does not have to be.
Keep up with short-term weather forecasts. As a business
owner, you are accustomed to keeping up with economic forecasts and with
business news. You need to add weather news to that list.
Here’s an example. Knowing that its customers buy more soup
in cold, damp and windy weather the Campbell’s Soup Company pays close
attention to the weather. It even links
its advertising to the weather forecasts in certain markets with an algorithm
called the “Misery Index.” Therefore, if you hear a Campbell’s soup ad on the
radio, chances are pretty good that the weather where you are is miserable.
Diversify your product line. I recall a new small business
in my town that sold primarily smoothies and iced drinks. The Hawaiian-themed
drive-through kiosk seemed to be doing a brisk business during the summer
tourist season. As fall neared, however, I watched closely for menu items that
would reflect the upcoming temperature changes.
Maybe soup? Hot drinks? However, nothing seemed to change
and, not surprisingly, I saw a “For Sale” sign on the shuttered doors before
the end of the year.
Seasonal changes are predictable, but you can also
experience the occasional cold snap during the summer and warm spell during the
winter. Have options for your customers, so that you can meet their needs on a
year-round basis.
Check your insurance coverage. Extreme weather events, such
as the recent floods in Louisiana, can devastate your business.
The Red Cross calls the flooding in Louisiana the worst
natural disaster in the U.S. since Superstorm Sandy in 2012 and estimates that
its response efforts should reach at least $30 million.
FEMA (Federal Emergency Management Agency) representative
Rafael Lemaitre reported on August 21 that more than 25,000 people in Louisiana
had already filed flood-related claims.