Contribute to the Reconstruction of My Small Business

As a result of Hurricanes Harvey and Irma, news sources reported that the Federal Emergency Management Agency (FEMA) estimates that 40% of small companies never recover following a catastrophe. Even though 74 per cent of small companies were forced to shut down due to Hurricane Sandy, a 2015 poll by Nationwide Insurance found that 75 per cent of small businesses still do not have a disaster plan in place. The threat of a natural catastrophe may be a low concern for exhausted small company owners when contrasted with the need of keeping customers happy and pay the bills. When a calamity hits unexpectedly and without warning, people must think outside the box to get their lives and companies back on their feet again.

Business owners that plan ahead of time and implement a business continuity plan are more likely to be able to reduce possible harm to their company's operations.

Crowdfunding to Aid with Small Business Resilience

Entrepreneurs with new or growing enterprises are acquainted with crowdsourcing as a source of cash. To generate cash and reach a prospective audience for their service or product, many entrepreneurs turned to crowdfunding websites such as Kickstarter or Indiegogo. When it comes to alternative finance, the University of Chicago Alternative Finance Benchmarking Report revealed that although equity-based crowdfunding declined by 7 per cent last year, "donation-based crowdfunding increased by 60%, producing $224 million in 2016." It was observed in the same research that donation-based crowdfunding has climbed by 40% in the last three years.

This is encouraging news for businesses utilizing crowdfunding to seek cash in the aftermath of a natural catastrophe that has occurred unexpectedly. The Go Fund Me website was used to assist Ashley Freeman, owner of Handy Ma'am home renovation services in Houston, TX, in her rehabilitation after the devastation caused by Hurricane Harvey. Ashley was involved in a drive to replace equipment and supplies that had been destroyed by the hurricane. Her objective was achieved, but she is still recuperating. According to Ashley, "Go Fund Me was a fantastic first step in getting back where I needed to be." "I'm grateful that so many people care as much as I do when other people are in need," says the author.

In addition to Kickstarter, Kiva, a non-profit organization committed to collecting cash for businesses in 80 countries, is another crowdfunding tool that has been utilized by persons impacted by the storms in September 2017, according to the organization. Jonny Price, a senior director of Kiva U.S., is pleased with the organization's work to assist small companies in the United States.

We at Kiva want to use the generosity of our 1.6 million worldwide lenders to provide financial access for businesses that are judged too risky or costly to service by traditional lending institutions. Providing assistance to small companies that have been impacted by natural disasters such as Hurricanes Harvey, Irma, and Maria is one compelling and relevant example of how we plan to achieve that goal. 358 Kiva lenders recently contributed to the funding of this loan to Matilsha in Puerto Rico. Ultimately, we believe that Kiva's sustainable loan model can complement the courageous work of more donation-based first responders like the Red Cross by providing long-term rebuilding assistance.

Disaster Preparedness for Small Businesses

Natural catastrophes, such as hurricanes, floods, tornadoes, earthquakes, or wildfires, have the potential to cause the following losses:

• Equipment, supplies, furniture, and other office furnishings are included in the price of the office space.

• Whether on paper or in digital format, records are required to keep the firm functioning.

• Products or supplies that are required to offer products or services to clients.
• The location of employees' residences and the chance that they will return to work

• Suppliers or distributors that cannot make it to your area of operation.

• Customers may choose to conduct business with a competitor if they cannot contact your company.

It is possible to replace office equipment and other items in the future, but it is impossible to replace corporate and accounting records. The Small Firm Administration of the United States has developed a Record Keeping for Small Business Guide to aid you in keeping the documents you'll need to rebuild your business, such as contracts, licenses, leases, employee information, and financial records, while you go about your business. The Federal Emergency Management Agency (FEMA) also has a website dedicated to disaster preparedness for small businesses, which may be found at Small Business Preparedness. Some helpful suggestions include keeping data in the cloud, doing a threat analysis, getting company insurance, and developing a continuity strategy that includes contact with workers, vendors, and suppliers, among other things. The objective is to go back up as quickly as possible to minimize the loss of clients.

Putting a stop to the void

Many company owners discover that their business insurance only covers a certain amount of what they need. There is a considerable gap between what is paid out in claims and what is required. So many entrepreneurs are compelled to develop innovative strategies to get their firms back up and running, including borrowing money from friends, family, and investors. Entrepreneurs acquainted with novel financing alternatives for startup money are starting to depend on crowdsourcing for disaster relief when a calamity strikes them.

Recovery Doesn't Have to Be a Disaster to Be Successful.

Sadly, hurricanes and wildfires in 2017 have compelled company owners to plan for the worst-case situation. FEMA and the Small Business Administration of the United States have developed online guidelines to assist small companies in their recovery efforts. The agencies will also provide financial assistance in the form of low-interest loans. While companies and residents wait for their turn to be approved for reconstruction finance, many entrepreneurs and company owners are looking to alternate forms of financing to get back to servicing their customers.