Business owners tend to be pretty optimistic by nature, and, as such, they often focus on the positive sides of their operations. With that said, it can pay — literally — to be mindful of the potential dangers to your business, and then take proactive steps to minimize that risk.
After all, while the modern is set up for businesses to succeed, it also poses unique threats which can quickly turn into big problems for unprepared businesses. There’s no way to completely eliminate all potential dangers to your business, but by taking the steps below, you can ensure that you’re as well-protected as possible.
Insurance Protection
You’ll need to have certain types of insurance by law if you run a business. Those are:
- Public liability insurance
- Third-party personal injury insurance
- Workers compensation insurance (if you have employees).
But that’s really just the start. While the specific types of insurance will vary depending on the type of business, it’s important to ensure that you’re fully protected against any and all realistic threats. For example, you might need extensive commercial property insurance (especially if it’s located in an at-risk area), business interruption insurance, or cyber insurance. You’ll hope that you never need them, but if you do, then you’ll be thankful that you took the time to get covered.
Investing in Safety
Businesses should invest in employee safety because it’s the morally right thing to do. After all, all organisations have a duty of care to the people in their employment. But there are also business reasons for doing so, too. In the worst-case scenario, an employee incident can lead to reputational damage and expensive medical and legal costs. But even in the best case, employee safety incidents can result in poor workplace morale and high employee turnover.
Prioritising safety in the workplace involves identifying potential threats, training employees, and treating any incident, however minor, seriously.
Working With Legal Experts
In most cases, business owners are able to protect their organisations by taking proactive, in-house steps. However, there are some incidences where it’ll be important to seek professional advice and support. Working with a business lawyer who has local expertise can help manage more complex business matters, such as how to correctly structure the organisation and protect your assets. It’s also recommended to speak with a lawyer for employee-related matters, such as ensuring that your hiring and firing practices are fully compliant with the law.
Thinking of the Future
Your business may be thriving right now, but in this ever-changing world, it’s important to think about the future. Indeed, one of the biggest threats to businesses is simply time. The future is going to arrive one way or another, and not all businesses will successfully make the transition. It’s the businesses that proactively think of the future and come up with a success-focused plan that’ll be less vulnerable to changing market conditions.
Protecting your business from the future may involve diversifying your revenue streams or expanding into new markets. At the very least, it’s important to be aware of how your industry is evolving and changing consumer preferences. With that information, businesses can position themselves to take advantage of new market conditions when they arrive.
Cyber Protection
Cyber crime is on the rise, and unfortunately, it’s disproportionately affecting small to medium-sized businesses. One study found that 43% of all cyber attacks are aimed at small businesses. When they’re successful, the average cost to the business is a costly $39,000.
The reason why small businesses are targeted is simply because they’re the ones who are most vulnerable to cyber attacks, but it doesn’t have to be that way. Businesses can ensure they’re fully protected from cyber criminals by partnering with an IT security firm.
Background Checks
It’s not nice to think that someone in your employment might intentionally cause your business harm, but the statistics say that it’s a possibility. Every year, Australian businesses lose millions of dollars due to internal crime.
Having sufficient security measures in place is important for managing this crime, but the best approach is to conduct thorough background checks before a person enters your employment. Following up on the references they’ve provided and conducting a criminal background check are effective ways to ensure that the candidate is trustworthy. Before hiring, it’s also important to read your gut — if something is telling you that there’s something quite right, then it’s better to listen to that intuition than to ignore it and be sorry later.
Checking Suppliers
If you have suppliers, then your business success will be in their hands nearly as much as it is in your own hands. After all, choosing the wrong suppliers can lead to high costs, poor quality, and operational inefficiency which can be extremely damaging to businesses.
In most cases, you’ll have a plethora of suppliers to choose from, and putting together a process that pushes the right one in your direction is essential. Aside from reviewing the quality of their products and their pricing structure, be sure to read up on reviews. A couple of poor reviews — or no reviews at all — doesn’t necessarily mean that they’ll be bad for your business, but it does increase the chances.
Manage Cash Flow
Protecting your business depends, in part, on being aware of the primary dangers. While its importance is often overlooked, ensuring that you have a healthy cash flow is paramount for ensuring that your business can navigate quieter periods. Some handy ways to improve cash flow include:
- Raising prices
- Offering small discounts for early invoice payment
- Reducing unnecessary expenses.
Managing Reputation
Finally, businesses should take steps to manage their brand reputation. In a climate where consumers pay more attention to reviews than ever, a series of bad reviews can be devastating for a business. Encouraging happy customers to leave positive reviews really can make a difference, helping to offer a counterpoint against any negative reviews your business receives.
By taking the steps above, you can ensure that your business is safe both now and in the future.
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