It isn’t difficult in today’s environment to find ready examples of events that can challenge the most resilient of businesses. Pandemics, natural disasters, economic insecurity, regulation, theft and cyberattacks, to name a few, have touched us all—and that’s just in the past few years. The Stoics of Ancient Greece believed resilience is about focusing on what is within our control and accepting what is not. That’s a lovely philosophy for personal growth, but it’s hardly practical for most small business owners. Businesses today no longer have the luxury to ride out the ebbs and flows of trade and hope for the best. Those businesses that last most often have a contingency plan for the approaching challenges ahead.
There isn’t a more telling and immediate example than when Hurricane Helene struck the Southeast United States, and most destructively, western North Carolina in 2024. “After experiencing Hurricane Helene, we’ve developed a deeper appreciation for the importance of having a contingency fund,” says Brooke Souhail, owner of Casablanca Cigar Bar in Asheville, North Carolina. “While we’ve always prioritized saving, we’ve also stuck to the practice of avoiding debt, aside from real estate. After the hurricane, we fully stand by this strategy.”
Souhail’s shop was wiped out by the storm as 24 feet of water surged through downtown Asheville leaving a mud-filled path of destruction. “A key takeaway for us has been the importance of having enough cash reserves to cover at least six months’ worth of operating expenses,” she says. “Both during COVID and after Hurricane Helene, we faced significant business disruptions, and this financial cushion has been a lifesaver.
“Additionally, I highly recommend that everyone take the time to review their insurance policies. This is something we wish we had done sooner. While our building was adequately covered, we canceled the contents insurance during COVID to save costs. Since sales have rebounded post-COVID, we could have reinstated the policy, but unfortunately, insurance wasn’t top of mind, and it got pushed to the back burner.”
The most succinct definition of business resiliency is a business’s ability to anticipate, prepare for, respond to and recover from disruptions while maintaining its core functions. It is a proactive approach to risk management, ensuring that your business can survive unexpected events. This can mean building up your cash reserves and updating your insurance policy—like Brooke noted—to simple data backups, and diversifying your inventory.
Granted, the premium tobacco industry is no stranger to the need for resilience. The industry has been battling anti-smoking legislation, regulations and taxation for decades—it looms over our industry like dark London clouds. And yet here we still stand, in large part because of the ceaseless commitment of retailers and manufacturers who have never relented.
“We started the Alabama Tobacconist Association to help on state issues,” says Harris Saunders, owner of several Cigars & More shops in Alabama, while discussing how his business approached mitigating the threats of increased regulation and taxation. “You need to be involved in local politics. Start a state association. Support PCA, CRA and other groups for federal issues, and get to know your city manager and mayor.”
Advocacy, at all levels, has raised awareness, strengthened the industry and made premium cigars heroically resilient to continued threats.
No industry or business can bat 1,000, but with a little planning, you can strengthen the odds that your business can sustain and grow through most challenges. Here are a few issues to consider to bolster your business resiliency:
- Operational flexibility: Flexibility is essential for resilience. Encourage a culture that embraces change rather than resists it. “One of our biggest concerns is smoking bans,” says Paul Groh, owner of Metro Cigars in Brookfield, Wisconsin. “So, we’ve built our own stand-alone building with outdoor seating in case we face smoking bans in the future.”
- Financial reserves: If you don’t have one, start one. If you have one, build on it. A rainy day fund is never a bad idea.
- Insurance: Check that it is updated and that it covers all eventualities relevant to your location.
- Relationships: Help your customers during a difficult time and they’ll support you in return when you need it. Strong relationships with stakeholders—employees, customers, suppliers and the community—are vital for resilience. Invest time in building trust and transparency. A loyal customer base can help sustain your business during challenging times, while supportive suppliers can provide flexibility in your operations.
- Data backup and recovery: Implement solutions to ensure business continuity in case of data loss or system failure.
- Collaborate: Yes, that retailer across town may be competition, but that is a moot point if you get regulated out of existence. Work with your premium cigar peers to protect your business.
- Lean and mean: “My best defense is running my business as lean and efficiently as I can,” says Curt Diebel, owner of Diebel’s Sportsmens Gallery in Kansas City, Missouri. “I don’t let my inventories get bloated.”
- Diversify revenue streams: Explore opportunities to diversify your offerings, whether by expanding product lines, entering new markets or forming strategic partnerships. A diversified revenue base can cushion the impact of economic downturns and provide stability when one area of the business is underperforming.
- Cultivate Innovation: Encouraging innovation in your business can lead to new products, services and processes that enhance resilience. Create an environment where employees feel empowered to experiment and propose new ideas. Leaders should foster open communication, allowing team members to express concerns and ideas.
- Be aware: “In the wake of any emergency, be mindful of scammers,” cautions Souhail. “We’ve encountered several, particularly among contractors and cleanup crews. It’s crucial to carefully vet anyone you hire, ensuring that you have a solid, well-understood contract in place. Be wary of those who ask you to sign over your insurance benefits to them directly, as opposed to providing an independent quote for the job. Additionally, private insurance adjusters can sometimes do more harm than good; their fees often outweigh the additional funds they claim they can secure for you.
“While there are legitimate professionals out there, the reality is that scammers often prey on people who are in crisis mode, not thinking clearly. Unfortunately, I can’t list all the ways our community has been exploited, but it’s a reminder to remain cautious during these challenging times.”
Business resiliency is not just about surviving crises, it’s about thriving in a dynamic environment. By implementing these strategies, organizations can build a robust foundation that not only withstands adversity but also seizes opportunities for growth. In an unpredictable world, resilience is key to long-term success.
– Story by Greg Girard. Photo: Adobe Stock.
This story first appeared in PCA The Magazine, Vol. 1, 2025. To receive a copy of this magazine you must be a current member of PCA. Join or renew today at premiumcigars.org/membership.