How does the weather affect your business?

By Tina Zawila

Last week Mother Nature decided to show us what she can do!  On Thursday it was Gladstone’s turn to feel her force and it certainly was an intense 24 hours.  Then on Friday morning we all woke up to blue skies, very little wind and a cool change.  The perfect example of how fast things can change in a single day.

So how were you and your business affected by the weather last week? 

The CBD was a ghost town with many businesses deciding not to open.   I know this decision was not reached lightly for many of the small businesses.  For those that rely on customers walking in the door, there certainly wasn’t going to be many of those around.  So the decision was logical, but it came at a cost – rent must still be paid, overhead expenses for the month will still be much the same, and if they had to pay their staff anyway, then the owners were left out of pocket, thanks to Cyclone Debbie. 

There were also businesses that had flood waters inundate their premises.  The cost of cleaning up is certainly an unexpected expense, not to mention any further lost trade during the clean up efforts. 

Some of these costs may be covered by insurance, but often the opportunity cost of lost trade is not covered, or not sufficiently covered, so these business owners will feel the financial affects of this unusual weather event.

On the flip side, some businesses will see a spike in sales as a flow-on from Cyclone Debbie.  Clean up operations and repairs all require labour, tools and additional supplies.  Residents will need to maintain their yards more often due to the beautiful green grass that’s growing faster than usual.

As a business owner have you considered how your business has, or will be, impacted by the weather?  How can you minimise the cost and maximise any opportunities?  Are you confident that you can make good business decisions when faced with unexpected circumstances?  Do you know how much it costs you to operate your business even when the doors aren’t open?

The professional business advisors at Sothertons are here to help you answer these important questions, and make better business decisions.  Call us today on 4972 1300.