Make your business more resilient: avoid hassle and loss of revenue

Some had to turn patients away and reschedule appointments. Others saw customers stay away. Routine work took longer, both at the dentist’s and in the catering industry.

Worst-case scenario

“It affected us for 2 weeks,” says dentist Jantine Jaspers of Amermondzorg. For over 85,000 water connections, it was a recommended to boil drinking water before use. “We were affected by it in our practice too. We use water for various treatments, but we could not do that now. As a result, we did not achieve our usual turnover. Staff costs continued to mount up. So those are expensive hours.”

The situation has made her, as a business owner, reflect on the risks of entrepreneurship. “This was not the first time we had been affected by contaminated water. And if that situation were to happen again, it would be a nightmare scenario. A dental practice has high fixed costs. Issues like this have an immediate and damaging impact on your business.”

Find alternatives

So, Jaspers and her partner looked for an alternative. “We requested a price quotation to have 2 chairs converted. As well as being connected to the mains supply, they will also be fitted with a tap for clean bottled water. That means we will not be dependent on others anymore.”
Last summer, Jaspers had already replaced 3 old chairs. The new chairs could be used thanks to the bottled water. “That was our saving grace during those 2 weeks.”

Cafe Curtis had to adapt as well: their soda machine mixes tap water, syrup, and carbon dioxide. To make soda, they had to rent 2 refrigerators, buy crates of bottled soda, and find the space for all this. It meant an investment, but no customers had to be turned away.

Customers get to choose

Saying no was not an option for the pub. But quickly serving soft drinks using the machine that mixes syrup, carbon dioxide, and tap water was not an option either. “So, from one moment to the next, we went back to the old-fashioned way of serving from bottles,” says Floortje Duits of Café Curtis in Amersfoort. “And we had to make room for 2 hired fridges and all the crates of soft drinks. It took a bit of adjusting. But we can handle that,” the owner responds matter-of-factly.

Walrick Halewijn knows all about it. As the owner of the De Observant function venue and Grand Café Halewijn, he let customers choose for themselves. “The advice was to boil the water, nothing more than that. The risk you took by drinking it was not particularly high. That is why we told people that we used tap water that had not been boiled beforehand for our coffee. Some customers opted out, or stayed at home, and others went ahead and drank it.”
Halewijn calculated that boiling water was not feasible for him. The cost of purchasing kettles and the hours of labour involved would not have been worth the revenue.

Profit as a buffer

Halewijn has no plans to make major changes to reduce his reliance on water, gas, and electricity. He accepts the practical risks and has made ample financial provisions for them: “I set aside 15 cents from every euro of turnover. Immediately. That way, you are forced to run your business on the remaining 85 cents. This way, you secure your profit first, which you can then use for new investments and to cover any setbacks.”

Halewijn advises every business owner to prioritise financial health this way. In his view, a solid financial buffer is essential. “I am also very careful about depreciation. Expensive machinery needs to be replaced eventually. I set money aside for that from the moment of purchase.”

 

Fewer risks? Review your business structure

Like Halewijn, Jaspers is aware of the risks involved in running a business. Even when those risks come from outside and sometimes seem far away. She mentions the current global unrest, as well as the lockdowns during the pandemic. “We made a conscious decision to restructure last year. We started out as a maatschap and grew gradually.” A larger business has many positive aspects. On the other hand, financial risks increase too, especially if the structure of a business is no longer appropriate. “We now have 3 branches and employ 40 people. We no longer wanted to be jointly and severally liable.”

Amermondzorg changed its legal structure, from a maatschap to several BVs. “In terms of tax, it is not more advantageous for us. We took the step anyway. As a practice owner, I don’t want to run the risk of my family suffering if something were ever to go wrong in the business.”