As Americans watch developments of a global health crisis, panicky but vague news headlines abound from a variety of sources: The Center for Disease Control’s Nancy Messonnier, “this might be bad,” the World Health Organization began with “if it hits us…” and the Washington Post declaring “the outbreak appears inevitable.”

“…if you start planning does it mean you’re panicking?”

Discussion about emergency planning for hospitals, schools, and community events have begun. But what if you own a business? And if you start planning does it mean you’re panicking?

As with any unknown, a good lawyer will tell you, it’s always best to be prepared.  Here are a few suggestions on risks to consider to keep your business running smoothly.

Make An Assessment of Your Company’s Potential Risks and Liabilities

Whether you’re a restaurant owner who could see a dip in lunchtime traffic or a product reseller waiting on an overseas shipment, there are many problems that could stem from a potential global crisis. You may be forced to rethink decisions that were made months ago such as business travel, sending employees to public events this spring, even purchasing expensive box seats for sports games.  More seriously, what if your town asks the local workforce to “self-isolate” for 14 days as recently reported in New York?

You’ll need to gauge how these decisions will affect your business internally and externally and what you can do to mitigate problems that could seriously derail your business routine or your bottom line.

Communicate with Your Employees

No one wants to be seen as a fear monger, which is why communication can be muted in an office environment in the first days of a potential crisis – particularly one that no one has really seen before. “Employee dialog is important in the early stages of a possible threat and shows employees that you are taking the business and their safety seriously,” said Attorney Robert Pellegrini, Jr.

Encourage employees to identify unforeseen challenges, says Attorney Pellegrini, and follow up with an email to staff about the directives.  Questions about policy regarding school closings, telecommuting options and developing a consistent message to customers could be points of your discussion with employees.

Be Prepared to Pivot

You’ll want to anticipate which of your service offering(s) would most be affected if your business experienced financial turbulence, such as:

a. lack of foot traffic
b. if investment on key projects was in jeopardy or delayed
c. if you or your staff were unable to provide the service

Once this is determined, start by looking through your contracts including the fine print on client and partnership agreements or payment terms. You’ll want to know all of your options if you need to free up funds, if you’re owed anything or the amount of time you can expect to be paid in full on certain projects.  Don’t delay on sending invoices or stepping up your collections efforts.

If you manage a brick and mortar business, review areas of your business that can be supplemented with alternative income or start looking for ways to provide a service in alternative ways (delivery methods) or via online sales.  Promote how you can provide your service in easy, remote methods.

And finally, review your Succession Plan – it couldn’t hurt.

Have Cash Available

When stocks first plunged on February 24th, Fidelity customers were unable to gain access to their accounts or their accounts showed a zero balance.  Don’t get caught off guard if your online money management system goes bust – make sure to hold some aside for an emergency.  We encourage our clients to talk with their accountants as often as their attorney.

PK Boston Law is a full-service law firm, specializing in real estate land use/zoning, business, Cannabis, and collections – serving Massachusetts and Rhode Island.

By Attorney Robert Pellegrini

The above information is designed to provide a helpful overview of a relevant topic. It does not constitute legal advice nor should it be construed as such. Please do not take action based on the above information without seeking formal legal advice. If you would like additional information, please contact Attorney Robert Pellegrini, Jr. at (508) 807-1131 or email us at info@pkboston.com