By Peter Langley, Vice President Operations, FedEx Express Australasia
While ex-tropical Cyclone Alfred seems just a distant memory, many small businesses are still picking up the pieces in the devastating aftermath. Such major natural events serve to remind us of the fragility of business operations when disaster strikes, particularly for the small and medium businesses (SMEs) that don’t have the financial safety nets of larger operations but often serve as the pillar of our communities.
Recent data underscores the vulnerability of Australian SMEs. A report by the Australian Small Business and Family Enterprise Ombudsman(ASBFEO) found that only one in four small businesses has a business continuity plan in the event of a disaster, with 50 per cent having no plans at all.
This lack of preparedness contributes to significant financial loss and longer recovery times, disproportionately affecting the smallest businesses.
Many small businesses have navigated the impacts of natural disasters so far this year. These business impacts include temporary closure and lost income, utility outages, structural damage to property, ongoing site mould issues, and difficulty finding physical business records. In some cases, the lack of business records impeded the sale of businesses.
However, the recent flooding will likely have an impact over the year, and potentially years to come, with small businesses actively seeking help dealing with their very difficult circumstances. Disruption to business can erode a brand’s reputation and trust overnight.
While the COVID-19 pandemic had the broadest impact, severe rainfall (16 per cent) and bushfires (12 per cent) were also significant disruptors. New data from a federal Treasury analysis shows that natural disasters in the first half of 2025 have cost the economy $2.2billion dollars, largely in slower retail and household spending.
With the right strategies and contingency planning, Australian businesses can improve their chances of staying operational or bouncing back quickly. Here are some tips for small businesses to help build resilience and navigate natural disasters:
- Develop a Business Continuity Plan BEFORE You Need One
A business continuity plan is critical for disaster preparedness. It’s one of those essential documents that you hope you will never have to refer to, but you’ll be extremely thankful for in the unfortunate event you do.
It should take a whole-of-systems approach in which every department within the organisation is consulted to ensure that all personnel are clear and aligned on what to do in the event of an emergency.
Among other important matters, it should outline emergency contact lists, data protection protocols, employee communication plans, supplier details (across the whole supply chain), and customer communication plans. It should be reviewed and updated regularly. FedEx has great emergency preparedness checklist to assist small businesses
- Maintain Open Communication with Employees, Suppliers and Most Importantly, Customers
Dependability is essential. Keep open lines of communication with employees, suppliers, and crucially, customers. Use communication means available to you such as social media, email, SMS and even physical signage to keep customers informed about changes in hours, service delays, or online ordering options.
- Diversify Your Supply Chain
A diverse supply chain can assist business resilience and customer trust, particularly during disruptive events. Relying on a single supplier for important goods or services can be risky; exploring alternative suppliers and having a backup plan for logistics and delivery are important means of mitigation.
- Stay Informed and Adaptable:
Monitor weather warnings and official emergency alerts from authorities like the Bureau of Meteorology and your local State Emergency Service (SES). Natural disasters are an unfortunate reality in Australia, but with careful planning and proactive measures, small businesses can significantly improve their chances of weathering the storm and emerging stronger on the other side.
- And Finally, Lean into Community Support
Beyond your immediate business, build strong community connections with other local businesses and government bodies. These networks provide invaluable support and shared resources during a crisis. Remember to stay informed and adaptable to emergency alerts.
Subject to any eligibility criteria, don’t hesitate to lean into government and community initiatives like the Disaster Recovery Funding Arrangements (DRFA), which offer emergency relief, grants, and low-interest loans designed to help businesses recover and rebuild.
Natural disasters are a part of doing business in Australia, but they are increasingly becoming more common. These devastating events aren’t a matter of “if” but rather “when”.
For small businesses, working collaboratively and proactively planning is essential not just for weathering the storm, but for thriving in the aftermath. At FedEx, we stand ready to support Australian businesses in their journey towards greater resilience.
Disclaimer: The information in this article is general nature only. It is not intended to address the circumstances of any specific entity or individual.
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