Hurricane Ian: The Impact on Small Businesses in Southwest Florida

In this podcast episode, PartsVu Xchange Talks Boating host spoke with Captain Frank Lecardo, the owner of Naples School of Boating. Frank lives and works in the Naples, Florida, area, one of the areas hit very hard by Hurricane Ian.

Ian’s landfall wind speed in Florida was one hundred fifty miles per hour and tied for the fifth-strongest on record in the United States. Ian also tied for the fourth-highest landfall speed on record in Florida.

Ian is estimated to have caused more than sixty billion in private insured losses in Florida, making it the second-largest disaster loss event on record, behind Hurricane Katrina, which devastated New Orleans and surrounding areas in 2005.

In this episode, we will discuss the hurricane and its aftermath. We’ll dig into details about the storm’s profound impact on the areas affected.

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So Frank, what do you see in the area, and how has the Southwestern Florida community been impacted by Hurricane Ian?

Frank: In the first few days after the storm, it looked like the storm had a significant impact on almost every neighborhood. Many people had no electricity, internet, or poor cell phone service.

Areas away from the beach and coast returned to normalcy reasonably quickly. However, I drove down to a local marina where I do a lot of my work as a training captain. It was a different world. It looked like a Tsunami went through there.

I was happy to see that my friends at the marina were working hard to put things back together and resume operations. To my amazement, they didn’t lose a single boat in their rental fleet. Their team did an incredible job preparing for the storm, which is excellent news because it will allow me to get my customers back on the water sooner for training.

I see a great sense of community in the storm’s aftermath. People are helping each other, businesses are helping other businesses, and many are volunteering time and donating resources. Naples is a relatively large geographical area, but the storm has brought us together for a small-town feel.

How do you think the storm will affect the upcoming high season for Florida tourism?

Frank: I think it’s going to be a challenge.

Last year, we had a shortage of housing. As a result, many people who wanted to spend time here were out of luck unless they booked months in advance.

This year, due to the hurricane, our rental inventory will be even lower. Many places were damaged in areas with large numbers of seasonal homes. Since the damage was so extensive, many seasonal residents may decide to forgo visits until repairs are completed.

All in all, it’s tough to predict the extent of the impact that this hurricane will have on tourism.

How are small businesses in the area affected by the storm?

Frank: It depends on the type of business. Certain industries will see higher demand. For example, construction-related companies like those that build docks or seawalls will be busier than usual.

Other businesses may be negatively affected by the storm. Shops and restaurants may need significant repairs to resume normal operations. The unfortunate thing is that they will not earn revenue while they are closed.

Micro-businesses or one-person businesses also suffer. Self-employed people like me may not necessarily have a storefront downtown, but we are still businesses and part of the local economy. I hope that companies like mine are all included in loss calculations related to Hurricane Ian. We need to be adequately accounted for in terms of economic assistance and relief.

Everyone from charter boat captains to restaurant owners and marinas deserves consideration regarding their economic impact and relief efforts to aid recovery.

What can people and businesses do to better prepare for future hurricanes?

Frank: I’ve lived in Naples for two years, and this is the first hurricane I’ve experienced in Florida. I’ve learned some valuable lessons so far, benefiting from smart preparations but also suffering from rookie mistakes.

I plan to have a shelf in my pantry dedicated to water and non-perishable food items. I’ll also likely invest in a portable generator to run my refrigerator and coffee maker. One smart thing I did in advance of the hurricane was to fill a forty-gallon trash can with water so that I had enough water to flush toilets. I have well water, so I have no running water without power.

Protecting property is a tricky thing. Knowing that I did not have trees near my house gave me a slight sense of comfort. Additionally, securing items outside is essential so they don’t turn into projectiles in high wind conditions.

Many businesses have difficulty protecting themselves because they are in flood zones. For them, they must have the proper insurance coverage. Of course, property insurance is important, but business interruption coverage also warrants special consideration. It provides some form of protection if they lose revenue due to a storm.

What are your thoughts about those that suffered losses that weren’t covered by insurance?

From a business standpoint, these risks are part of the journeys of entrepreneurs. My business will have a rough fourth quarter this year that may extend into the first part of next year.

However, we can’t insure everything, so cash reserves are important. Many think six months of reserves are sufficient, but twelve to eighteen months of reserves are even better. Cash is king, so being able to survive financially during times of uncertainty is often closely related to the reserves you have on hand.

What can people not impacted by Hurricane Ian do to help?

Frank: I would contact the Collier Community Foundation, a non-profit organization that donates cash and supplies to other organizations based on needs. You can specify if you would like your donations to be used in Collier, Lee, or Charlotte Counties.

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Please check out Naples School of Boating serving Southwest Florida, including Naples, Fort Myers, and Marco Island. They specialize in providing on-the-water training for new and inexperienced boaters and those who want to enhance their existing skills.

To learn more about how Naples School of Boating can help you improve your boating skills, check out their website at www.naplesschoolofboating.com.