When you run a business, you cannot expect things to go smoothly at all times. Disruptions are a part of the routine as your business can run into problems such as rising costs of material, labor issues, growing competition within the industry, and slump cycles.
Power outages are a common concern too. But they can have implications that are more critical than you may imagine. It is vital to know the possible impact and take proactive measures to prevent them in the first place.
Further, you must have a plan to address them and get your business back on its feet if they still happen. Let us explain the perils of power outages so that you can understand the value of managing them.
Loss of revenue
Power outages disrupt your company’s operations, and they can even come to a standstill. Machines will stop running for manufacturing companies, which means that your employees will go idle.
Sites may go down for e-commerce businesses, so your customers will be unable to place orders. They could even find another provider and buy from them. Your business ends up suffering from revenue loss and lost customers as well.
A business that relies on electrical equipment can suffer from compromised productivity due to a power outage. Employees can no longer complete their tasks, and they may run behind deadlines. It exerts greater pressure on them, and they may even end up committing errors only to make up for the lost time. Further, you will have to pay overtime, which elevates company costs to a significant extent.
An outage can be catastrophic if your inventory is perishable and vulnerable as it may get destroyed without temperature control. Industries such as pharmaceuticals, hospitality, and retail need to go the extra mile with outage management due to the perishable nature of their products. A substantial loss of such inventory can spell doom for small businesses, which is the risk you cannot afford.
Like inventory loss, equipment damage is another major peril that power outages bring for a business. The risk gets even higher if you do not have adequate measures in place to handle unexpected electric surges when power resumes.
A sudden power surge can damage or even destroy expensive appliances and equipment. Your budget could topple as you may have to spend a fortune for repair or replacement.
Impact on security
When the power goes off, your security equipment such as surveillance cameras and door alarms no longer work. It puts your business at security risks because there are chances of thefts and break-ins. Even sensitive data may be lost if devices are not shut down properly during an outage. The danger is more critical if you have cash reserves and expensive stock and assets on the premises.
Power outages are a serious concern for any business, regardless of your company’s size and scale. It is vital to know your risks and implement the best practices and strategies to address them so that you never have to worry about lights going out.