Don’t Wait for Y2K to Get You
It’s safe to say that big business in America is aware of the “Y2K” problem--the year 2000 glitch. Government agencies also understand the situation, although most still have an enormous amount of work to do in addressing it.
Small business is another story. A recent survey by the National Federation of Independent Business, for example, determined that as many as 82% of small businesses might have a problem but that only half of those surveyed had taken action or had a working plan. The federation’s worst-case scenario is chilling: as many as 330,000 failures among small businesses.
Here’s the problem: Too many of the world’s computers and other time-sensitive devices register years in two digits, such as 98 for 1998. For many, the rollover to 00 will be seen as a change to the year 1900, not 2000. To prevent potentially huge, widespread problems, billions of lines of outdated computer codes worldwide must be screened.
Examples? How about the Pennsylvania grocery that recently settled a lawsuit against the maker of its cash-register computer system. Seems the registers crashed every time a credit card with an expiration date of 00 or later was used.
Why aren’t more small business people concerned? They think they can’t afford a fix (wrong). They think it’s all hype (also wrong). They don’t have computer-savvy employees (not insurmountable). They assume they don’t have a problem or think they can ignore it. Others bliss out on the idea that someone will have a $19.95 one-size-fits-all fix in stores in time for the 1999 holiday season.
Many people understand nature’s food chain and the disasters that can happen if one seemingly insignificant part drops out of it. Y2K could be a similar problem on a broad economic scale.
Banks and major corporations have already begun to poll their suppliers and loan holders on whether they are Y2K-compliant. They want to ensure that the widget you make for their thingamajig (or the loan payment) will arrive on schedule. Ignore the query at your peril; the big companies say that if they have any doubts they will switch to a supplier they know they can depend on.
And don’t be surprised if your small business loan application includes a few Y2K questions.
You say your insurance will cover your losses? Don’t plan on it. Many insurers are taking steps to make sure that Y2K problems are not considered part of regular coverage.
There’s no excuse for inaction. Yes, the big federal agencies must deal with millions of lines of computer code, but a small business doesn’t. The steps to take are straightforward. First, bone up. The Web site https://www.year2000.com is one good source. Back up your data, taking advantage of the fact that reliable data storage has never been so cheap or more widely available. Invest in one of the recommended Y2K fixes already on the market.
Work has already been completed for some vital government functions. This is a problem with a solution, and that’s what has to be remembered.
