The Cost of Power Outages on Your Business
Posted by Kristopher Schwind
If you’re running a business, you know there’s always at least a hundred challenges to juggle at any given moment: upcoming bills, disgruntled customers, employee disputes, ruthless competitors – the list goes on and on. With all of these balls in the air, it doesn’t leave much time to think about potential problems. But there’s too much that’s actually going on to be concerned about what could go wrong, right?
If you want to run a successful operation, you need to look ahead and think about what it takes to keep your business running. Sure, it probably takes a steady stream of cash and some really capable people, but it’s more than that. Stop for a minute and really think about how much your business relies on electricity.
Most businesses require electricity to operate, and without it, operations become severely limited or simply stop altogether. Are you running a tech company? A school? A hospital? While these are completely different businesses with completely different needs, they all rely on power to stay afloat.
So it’s time to start thinking beyond the day-to-day, and focus on how you can keep your business up and running no matter what Mother Nature throws your way.
Let’s start with the financial cost of power failures, because without money, your business would simply cease to exist.
Power outages can cost businesses thousands of dollars an hour in lost revenue and productivity, and if you’re ill-equipped to handle an outage, your financial security blanket can be pulled out right from under you.
Many businesses essentially have zero margin for power loss. For small businesses, a power outage can spell the end of business entirely, but larger businesses can suffer significantly as well, leaving hundreds of employees at a standstill, and costing you money while their work is on hold.
Another major cost many businesses face lies in government fines. Facilities that operate under strict government regulations, such as factories, run the risk of steep fines under the Occupational Safety and Health Administration (OSHA). You can learn more about keeping your workers safe (and avoiding costly fines) with our free guide, How to Prepare for an OSHA Inspection.
Cost to Your Reputation
So we all know that money keeps businesses afloat, but think about where that money is coming from. Frequent outages can tarnish your reputation, causing you to lose what were once loyal, paying customers, which could mean the end of your financial security as a business.
From something as seemingly minor as a poor social media review you received after closing down unexpectedly to as serious as losing power in your hospital and endangering your patients, your reputation is on the line, and once that falls apart, your business will often go with it.
Restoration & Remedial Cost
And the costs don’t immediately reverse once the power returns. On the contrary, the return of electricity can literally bring to light some irreversible losses.
Take a pharmaceutical company or food processing plant, for example. Their inventory is perishable and often has extremely limited life spans, resulting in potential losses of up to millions of dollars in damage or contamination.
Not to mention the cost of paying your workers. Not only will you pay for the hours they’ve invested during the outage, but now you’re likely going to be providing each of those workers with overtime pay to make up for the lost time.
It’s not hard to see that the threat of a power failure can be catastrophic to your business, destroying everything you’ve worked to put in place. But that doesn’t mean you should be a victim of bad circumstances, either.
You need to be proactive, and that means being prepared with a reliable source of back-up power. Generators can provide years of reliable power so that your business won’t miss a beat. That means smoother operations, happier customers, and financial stability.
Stop risking a costly power outage and get in touch for a free generator assessment. Expert technicians will assess your facility’s unique power needs and advise you as to the best course of action to keep your facility safe and operational.
Your financial future depends on it.
Kristopher Schwind is the proud owner of National Standby Repair.