rainy day

How the Weather Affects Your Business

A good entrepreneur considers every factor that will have an effect on business operations and performance, then prepares a plan for each possible scenario. Many possible external reasons can affect the business, such as new legislation, the inflation rate, unemployment, competition, market saturation, etc.

However, the weather is constantly changing, and it is one that can have an immediate and lasting influence on the business.

The Weather and the Economy

The weather affects the individual decisions that people make every day. A sunny day, for example, can encourage a person to go out of their house and go to the beach or eat at a local restaurant. On the other hand, a rainy day can convince a person to cancel all plans and instead stay home.

The weather has an influence on individual emotions, too. You have heard about seasonal depression, a condition in which a person becomes inexplicably sad and lethargic throughout fall and winter. The lack of sunlight, which often leads to isolation, messes with mental health.

But the weather also directly affects the economy. According to estimates, about 20 percent of the American economy is influenced by changes in weather conditions. Several industries may see an increase or decrease in revenue depending on the current weather.

Agriculture, for example, will drop profitability when it is raining. Meanwhile, the construction industry sees activity decline when it is winter, and it is snowing outside.

William Daley, the former U.S. commerce secretary, said in a statement in 1998 that at least $1 trillion of the economy is directly dependent on weather.

Weather and Energy Use

Extreme weather events have an impact on energy use. Whether it is too hot or cold outside, you end up using the heating and air conditioning system of your business to ensure that employees customers are comfortable inside the office.

It takes tremendous power to warm or cool an ample space with several people inside. But it is necessary because, if the temperature is not correct, your employees will be less productive. Meanwhile, your customers would not want to stay in a store that is either too hot or too cold.

You will see your utility expenses shot up during extreme weather conditions.

mold buildup

Weather and Customer and Product Demand

The impact of the weather can be either good or bad. Some businesses and industries thrive when it is raining or snowing. In a storm, a mold removal franchise may become busy as moisture enters homes through cracks and holes in the roof. The increased humidity, or levels of moisture in the air, may also cause mold growth inside the house. When it rains, the humidity is at 100 percent, and the ambient temperature drops — the perfect conditions for mold spores to thrive.

On the other hand, some businesses see a decline in profit. Aside from agriculture and construction, other industries may also suffer when the weather is terrible. Events are either canceled or postponed, restaurants see foot traffic slow down, and travel declines.

Certain products also gain or lose demand when the weather changes. When it is raining, jackets and umbrellas increase sales. When it is sunny, consumers buy swimwear and sunscreen.

Weather on Employee Productivity

An extreme weather event impacts a person’s ability to move from one place to another. If there is heavy rainfall and flooding, your employees will not be able to go to work. This affects productivity and the quality of service your business can offer to customers.

Even if they do go to work, extreme weather can cause fear and anxiety from your workers. They have to think about their safety and the conditions in which they have to travel to and from work. It distracts them and prevents them from becoming productive.

Weather on Business Assets

The weather can do harm to your properties. In case of flooding, the very building that houses your office or store might gain damage that will become expensive to repair. You can also expect some equipment and merchandise to also be affected. The floodwaters that reach products in-store and in storage can no longer be sold. This results in waste and loss of profit.

The weather has a significant impact and influence on people’s lives. Businesses can also be affected by the weather. However, there is no way to stop a natural disaster such as a hurricane or a drought from happening and causing damage to the economy. Entrepreneurs should instead have a plan that can help them prepare for extreme weather events to prevent the consequences.

Share on facebook
Share on twitter
Share on pinterest
Share on skype

The Author

Scroll to Top