#834: The Business Disaster Plan You Hope You Never Need

Welcome to the Boutique Chat Podcast, where we're gonna help you build a profitable, sustainable business without you having to sacrifice your profitability, your family, or your sanity. Each week we're gonna dive into real conversations with retailers who have been exactly where you are and industry experts so you can learn and know exactly what to do next, all in community over competition. Whether you're just getting started or you're growing past an 8-figure business, you're in the right spot. So let's get into it. Welcome to this week's episode. Hey guys, welcome back to the podcast this week. I am so happy, Patrick, that you're here to join me today. I always love getting to catch up with you. Welcome to the podcast.

Ashley, thank you so much for having me on. I'm so excited to be here.

Oh man. Well, you and I, we run into each other a lot at market and out and about. We're in the same spaces in terms of serving the retail world. Um, but I know that there's a lot of listeners who are joining us today who aren't familiar with Heart on Main Street yet. And they should be. Everyone in our industry should be. So do you want to start by just giving us the backstory of how did Heart on Main Street get started and what it is and the mission you serve?

Yeah, absolutely. So really, we are a nonprofit organization focused on retailer resiliency. We focus a good amount on education for retailers, but really kind of our— what we've grown to be known for in that resiliency standpoint is disaster relief. And so when we are talking about natural disasters that affect a community, I mean, it is devastating for that community. And we often think a lot about the individuals there, right? So it's the homes, the people that are displaced, the different things that are going on that affect the community. But oftentimes lost in that is the independent retailer and the small business that is affected. And truth be told, there's not a ton of resources out there to help small businesses, independent retailers that have been affected by natural disasters. And so I come from a wholesale background and I kind of noticed that, that we'd see an area affected by a natural disaster and it would be years until the retail community is built back up. And that's just an impact. It from the wholesale side, that was a problem. There's customers that they they didn't have, but really it's you know the community, and you know there's something special. You all know this, but there's something special about independent retail that you know when it's there, it makes the community more vibrant. And after a disaster, it is this like beacon of hope that when the stores start coming back, things start to feel much more alive again, and it starts to feel like there's a sense of normalcy. People's houses can be rebuilt and that's great. That's great for the Johnsons. I love that their house got rebuilt and that they're back. But when it's the local independent store, that's like, hey, this is all of ours. It might be privately owned, but it's public. It's something for the community. So really we started the organization to help further that along, to help speed up that process so that it's not 2 years until a community can be rebuilt. We help by providing financial support for those retailers. We also partner with a lot of wholesale companies to provide product for them. And that's another big challenge that they have. They don't have product when, you know, okay, we can rebuild the store and get it ready. But we also work with companies to provide, let's say, $2,000 of a wholesale credit. They can go on their website, they can work with their rep, they get, you know, for $2,000, they can turn around and sell that for $4,000, that's free money coming into the store, which is amazing. And then we also this past year started to do some rebuild projects. We bring groups of volunteers down and to a store and we're not contractors, so we kind of have to wait for contractors as maybe a next phase of actually doing the rebuilding, but get it ready for the reopening. We bring in visual merchandisers and people that can build displays and paint and patch holes in the wall. Um, get the outside of the store ready and garden and get you, get it, beautify the space so that ideally when we leave, they can have their grand reopening. And we're getting, you know, groups of volunteers to come in and just do a lot of work for the store too.

That is so important. I, I'm sure I was just thinking as you were talking, there must be a statistic out there somewhere that says how many small businesses fail to ever reopen. After a natural disaster.

There is. Is there a— So it's, it's 40% fail to reopen, uh, and they've been affected. And that could be like the slightest effect. And I don't mean to discount anything, but it might be that they had a little bit of flooding in their store and the baseboards got ruined or, you know, so yeah, that's a pretty easy recovery to complete wipeout or complete devastation. I don't know the number on that, but it's, you know, 40% of all retailers that are affected by a natural disaster never reopen their doors.

Man.

And, you know, again, in that 60 that do, a lot of it is minor, minor effects. And so those that are truly affected, you know, they never have the chance. And, you know, some of the stores that we've worked with, very first store owner that we worked with, she had 3 stores. And it was a hurricane, the, the way that the hurricane affected the beach, the coastal area, it wiped out the area where she was able to have— they can't build there anymore. So, she went from 3 stores to only able to have 1 store. Um, and it's just like, yeah, there's no, there's no way you can rebuild that.

That's devastating. I, and you know, I think something that we all take for granted in business is we think, oh, there's insurance for that. But I, I mean, let's just dog on insurance people for a minute and the company. Okay. Only my father-in-law's, uh, been our insurance agent forever, so he would appreciate me telling you this. But it doesn't cover what's needed. Like, I think we all have this false hope that insurance is gonna save you, and more often than not, it doesn't even cover a fraction. And I think there's a lot of misconception about, oh sure, I have my amounts, right, with my insurance agent of what I actually had in the store, but it's just one of those pieces of paper that we often overlook. We forget to, you know, take a quick video around the store or, you know, doing inventory multiple times a year and really making sure that a level of inventory and supplies that we have insured is actually what we own. There's often a big disparity between those 2 numbers. So I don't know, there is just not enough hope that insurance is going to save you, and it's really going to rely on outside sources.

Yeah, like insurance, you know, they don't, they don't make their business by giving away money, right? Um, so yeah, after— they don't, I know, crazy. Uh, but so, you know, there's the— you have to fight for it. You have to fight tooth and nail By going through improving all of these things that you had in your store. And yeah, exactly to your point, if you're not videoing, you're not having a great idea of your inventory at any point in time. And inventory is not just product, but it's also your computer systems, your security systems, your everything within your store. If you don't have a good knowledge of that, then yeah, you're going to be out of luck and they're going to be like, well, We will cover this. And that's also if they decide to cover it at all. As we have learned through the several years, hurricanes are typically considered flood damage and areas where you have hurricanes, typically flood damage is very, very expensive. So if you are an independent retailer and you're looking at your costs and expenses, well, am I gonna add on that cost prohibitive flood insurance? Probably not. And then hurricane happens, they say it's flood damage, and they say, well, you don't have flood insurance, so we're not paying out anything. Yeah. And you're left to completely rebuild from whatever you have saved, whatever you can apply for loans, which, who needs another loan in their life? Um, and really helping having to build up their business again by themselves.

Yeah. Are you ready to team up for Pink Friday 2026? You are officially invited to join us and to save the date, November 20th, 2026, Support Small First. If you're ready to team up with fellow small business owners around the world, literally over 10,000 small business owners, we're gonna team up the Friday before Black Friday, held annually every year, to show the world what it means to support small businesses first. You know, on Black Friday, everyone can shop at big box stores and spend their budgeted funds, but what about supporting small businesses like yours first? Pink Friday is your opportunity to collaborate in community over competition with all types of small business owners. To get on the Pink Friday map, to host Pink Friday events either in person or online, and to also team up with your local media to tell the story of why you started this business and why it's important for customers to think of shopping your small business first. So sign up, save the date, and join us on Pink Friday coming November 20th, 2026. Man, that, I mean, just goes to show everyone that is listening to this podcast today, everyone here is at risk. I hate to sound doomsday, but literally anything could happen. It could be, A tornado just ripped through Wisconsin this week and took out a bunch of businesses and a whole town. Fires, floods, hurricanes. I mean, you guys have seen it all, but literally everyone is at risk. So if you're listening, please make sure you have this honest conversation with your insurance agent, you have your levels protected, like you have a plan. But more importantly, and again, this is why you're here today, I can't stress enough how important it is that our entire industry come together and really rally around your efforts, Patrick, because I'll take everybody back a couple of years, and some of you that are listening to the podcast probably remember this, but all the way back to Hurricane Harvey, which— what, what year was that? Maybe like 2018?

2017, 2018. Yeah, somewhere around there. Yeah.

Uh, well, Hurricane Harvey devastated, I mean, hundreds of boutiques. Like, it was huge for our industry, took out a lot. There were so many boutiques in that area, um, and so many people wanted to support those small businesses. But coming to the Boutique Hub, which was really the only organization at the time that, you know, could could organize all those retailers wanting to support. We're not a nonprofit, we're not a 501. And so as much as we tried to collect and send things back out and, and all those efforts, it just really wasn't enough in terms of what was needed for those businesses at the time. So that's why I love what you guys do, you know, being a nonprofit, being a 501, being able to collect the funds, being able to rally the troops and resources around these businesses. Again, I just can't emphasize enough How much our entire industry needs to rally around your efforts because they're so important. So will you take me through, Patrick? I know in the last year you guys have had several different stores you've worked with. Do you want to talk about some of the stores you've been able to support through these efforts?

Yeah, absolutely. So we've done a lot of work. Hurricane Helene, what was that, late '24 at this point, which we're already approaching that 2-year point, right? But that we've done affected a lot of the Southeast Asheville, which you never expect to get a hurricane, you know, the flooding there. So we've done been doing a lot in that area to help rebuild stores. We've helped about about a dozen different locations in Asheville, really all types of retailers. And again, from everything from the financial support, just being able to give out money to them, help cover costs, make sure that they're able to. make repairs within their store, to giving product from our wholesalers. And that's really where we've also done our first 2 rebuild projects. And so there's especially a part of Asheville, the Biltmore Village, which is this great old historic neighborhood outside the Biltmore Estate, and that the houses there that used to be for the workers of the estate have now been transformed into retail shops. And it's this Beautiful, beautiful area, but there was flooding that was over ten feet high. And so you think about it's a house; the entire first floors of all of those houses were filled with water. So we've been doing a lot in that area to help those stores be able to reopen. And just the mud in over a year later, just the mud caked onto the inside, the outside. So repairing those stores and making them beautiful again, we've been doing a lot there. So. That's been a very special part, I think, to be involved in as you see Asheville coming back and the tourism coming back there and people going back into the Biltmore Village. So that's one definitely thing that we, we hold near and dear is that we've been able to make a grand impact there. And then also, if you remember last July, there was some really tragic flooding in the Hill Country of Texas. It affected Hunt and Kerrville. And it made a lot of news because there was this camp, Camp Mystic, that was flooding there. And a lot of the children went missing and the camp counselors. And it was devastating for that community. And so we've gone and we've helped out a couple of their stores there and made sure that they're able to reopen and be a part of the community. Is it someone that really, really needs that good spirit again, that need that, the good feelings? And And they talk about the 28 angels that were lost in that community. And it's just, it's heartbreaking to hear the stories there. But we can help provide a little bit of hope, a little bit of that sense of normalcy again with their retail community. It's been absolutely worth it.

Yeah. Oh, absolutely worth it. I know that we've had, you know, as the flooding was taking place in the Hill Country and a few different things that have happened throughout the country, we tend to have retailers reach out to us and say, hey, how can I help? Or hey, I know somebody that's in need. You know, how do I get them in contact? So let's start with if there is a store owner that we know is in need or a community that's in need, what's the best way for anyone to reach out to you and say, "Hey, can you consider helping out this small business?"

Yeah. So easiest way is we have an application. Everything is application based for for help. So that is through our website, which is heartonmainstreet.org. You go there. We have an application. It's Easy to fill out name, you know where you're located, what you were affected by, how long you've been in business. Just kind of some basic things so that we can have you and that we know that you need help. And if you know a community, you know encourage more retailers to apply if you kind of have that that community or you know of a community that's been affected. Everything we do through a committee, and so certainly a a large community coming forward and saying, "Hey, we have nine stores from this community." That certainly makes a large impact and saying like, okay. We have to direct our funds there. We have to direct our attention to that area and really make a big, big impact for that, for that community as a little bit easier sometimes than a store.

Yeah. Okay. Good to know. Good to know. Hopefully everyone caught that and you guys know where to go in case you know somebody in need. But let's talk about the opposite end of that. How can we help? Let's start retail, wholesale. I mean, there's probably many different ways to help, but what are the best ways to support Heart on Main Street?

Yeah. Uh, so, you know, from retailers, we, you know, I noticed our retail audience. I always feel bad. I never want to take from retailers, right? I want to give back to those that are in need. About 80% of our funding comes from the wholesale side, from our wholesale supporters and wholesale vendors that we work with. So if you're listening and you say, hey, I have a great relationship with some wholesale companies, encourage them to help support us. Uh, they— we have this great— we just launched a seal program where they can get recognition for, um, how they support us in different tiers in there. But really, if they are— they donate at all to our organization, they get a seal that they can put in emails, they can put on their marketing materials, they can put on their website, their catalogs that show that they are a supporter of Heart on Main Street. So as retailers, support those brands that are supporting you all because they're the ones that are giving back. And wanting to help you out in times of need, and you know really encourage them to to reach out to us to support us, and that you know we built this kind of with a concept that these are companies that have made businesses off of independent retailers, and that if there's a issue or if there's a challenge with an independent retailer, that they should be there or there should be someone there to help them get back on their feet. And so yeah, if you have great relationships. You know, just send them over, send our website over and say, hey, this area is in need. Here's an organization that can help them out, Heart on Main Street. And, you know, encourage them to donate, encourage them to be a supporter. And, you know, we certainly do a lot to support our supporters. And so, you know, from the wholesale side and then from the retailer side, if you're wanting to do something, we have a great Pink Friday collaboration coming up with you all. I'm so excited about that. That is a great way to give back.

Let's talk about that because I don't, you know, there's so many stores that participate in Pink Friday, and we launched this for the first time together with you last year, but the Boutique Hub wants to give back. And so what we decided to do, because Pink Friday touches all types of retail, it doesn't matter if you're apparel, children's, specialty, Ace Hardware, home and gift, no matter what industry you're in, we want to celebrate independent retail on Pink Friday, which is always the Friday before Black Friday. So what we decided to do is we're going to give back. Oh, that's From so cool. the Boutique Hub's perspective, every single store that signs up for Pink Friday, you have to sign up, it's free, but we have to be able to count you as participating. Yes. Every store that signs up to participate in Pink Friday, we donate $1 back per store to Heart on Main Street. So usually it's several thousand dollars. We would love it to be more, but we need more people to participate in Pink Friday so that we can send that money back your way. But I think that's a really great, easy, free way to just say, hey, let's team up together and support a really good cause.

Exactly. And that's, you know, we are so appreciative of that partnership. Last year, you guys raised a ton of money for us, which is amazing. And we were talking like, we know people, it might be one person in the community that signs up and spreads resources. It is free to register, right? So register, it costs nothing. Money comes back to Heart on Main Street, which again, it goes to a great cause, really going to help support those stores in the downtown communities in those areas that are in need that really, that really could use that help.

Absolutely. You guys, we'll link up in the show notes today, of course, all the resources for Howard on Main Street, the application if you know someone in need, how to donate, um, any information you can send back to your wholesalers, and then of course the sign up for Pink Friday as well. Um, we'll link up because we would love for you guys to participate. Patrick, I would also add not only wholesale brands, but I'm just thinking about, you know, other people impacted in this industry that could support industry service providers. Retailers who are listening, if you have an ad agency or a web design firm or somebody that has supported your business somehow by providing a service, I would also ask and encourage them to support Heart on Main Street. Literally every single person, every single, you know, company impacted by this industry should be supporting Heart on Main Street.

Love that. And that's, yeah, great, great expansion of that, that, yeah, it's really anyone that wants to see independent retail thrive and be successful, which should be everyone that, you know, if you have some ancillary business to that, you know, being able to support our organization, no matter how big or how small, you know, we recognize those supporters and we want you all to work with them too, because they are the ones that really care about

you. Absolutely. All right. Well, Patrick, thank you so much for being on the podcast today. You guys, thank you for listening and tuning in. Please spread the word, tell your friends, do anything you can to support and encourage others to support Heart on Main Street. Literally like the lifeblood of this industry, trying to help independent retailers in times of need. Thank you for all the work that you do, Patrick. We really appreciate you.

Ashley, thank you so much for all of your support that you've you've given us throughout the years. So I really appreciate you.

Absolutely. All right. Hey guys, thanks so much for listening to this week's episode. If you found it helpful, please share it with a friend or feel free to subscribe. And I would always love it if you would leave a rating and review. Hey, if you want more tools, education, and just support, head on over to theboutiquehub.com. Or if you have feedback or episode ideas, DM me personally, AJ Alderson, on Instagram. Thanks so much for being here and listening to this week's episode. I'll see you next week. Bye.