Losing power for any amount of time can be a direct hit to your bottom line. Whether you’re running a coffee shop or a manufacturing plant, downtime caused by a power outage can halt operations, destroy customer trust, and burn cash fast. Business owners who don’t have a backup source of electricity end up scrambling when the power goes out. The longer it takes to recover, the more expensive it gets.
Failed transformers are one of the most common causes of costly blackouts, and that’s why businesses have transformer backup systems. They often include a redundant system, an on-site backup unit, a planned replacement program, or an emergency response plan. Without these safety nets, the consequences of a sudden outage can be severe.
Of course, you can’t prevent every power failure, but there are ways to mitigate the impact and avoid complete disaster. Before discussing these methods, let’s look at how damaging downtime can be.
The high cost of downtime
Many business owners underestimate how fast downtime can turn into lost revenue. Here are some of the hidden costs that often follow a power outage:
- Lost sales. When the power goes out, income comes to a halt. If you’re not selling food or items that require electricity in the moment to sell, you could take cash, but nobody wants to wander around a dark store.
- Lost customers. When you can’t serve customers, they’ll turn to your competitors. If the outage lasts too long, you might even lose existing customers who won’t come back.
- Wasted payroll. While you can send hourly employees home, you’ll still need to pay your salaried employees, whether or not they’re productive. If your team can’t work because the power is out, you’ll be paying them just to wait around.
- Customer compensation. Sometimes a business needs to compensate customers for the inconvenience. For instance, in the past, AT&T offered bill credits to customers for service downtime. However, despite being the right thing to do, it can cost a company millions of dollars.
- Repair premiums. Scrambling to restore power usually means paying a premium for last-minute emergency repairs. If you have to rent equipment, you can expect to pay even more.
- A damaged reputation. Unfortunately, it only takes one incident to get a flood of bad reviews online and bad press on social media.
- Damaged supply chain relationships. When a business goes dark for too long, there’s a good chance vendors will cancel contracts and choose a more reliable company.
Although power outages in the United States aren’t nearly as bad as they are in countries like Ecuador, where outages happen daily, it’s still bad for business.
What you need to protect against
There are only a handful of threats to electrical power, but they can strike hard. These include natural disasters, equipment failure, intentional damage, and cyberattacks. Thankfully, there are backup systems you can put in place that will carry you through a variety of situations.
Start with a UPS
The first place to start is by installing an uninterruptible power supply (UPS). These are battery storage systems that are on standby and kick in instantly when the power goes out. The batteries won’t last long, so they aren’t an ongoing solution. However, a UPS will give you time to properly shut down equipment that can be otherwise damaged from an abrupt power disruption, like computers and servers.
Standby generators are a must
For larger power needs, you’ll want a diesel or gas generator that turns on automatically when the power fails. They’re extremely reliable and can power your entire operation if you get the right size. Keeping them fueled can get expensive, but prolonged downtime is more costly.
Know how much power you need
Not everything needs backup power. Start by creating a backup plan for the most critical pieces of equipment that fuel your operations. For example, you’ll likely be required to keep your emergency lighting, fire alarms, and HVAC systems running to stay legally compliant. It will help to consult a professional to ensure your backup system will fit your needs.
Implement maintenance going forward
Whether it’s a transformer or other electrical systems, routine maintenance is non-negotiable to catch problems early. Scheduled inspections are cheaper than emergency replacements. Always partner with a professional for preventive maintenance to get a warranty on the work.
Don’t wait for the lights to go out
Power outages will happen, but you don’t have to be caught off guard. Planning ahead by implementing a backup system will keep your business powered and profitable.
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