When it comes to running a small business, optimism is essential. If you think that all of your decisions are going to go badly, then you simply won’t make any, which means that nothing will ever get done. However, it’s also vital that you look at things realistically, and find a balance between the two. If you don’t, then you could end up ignoring some pretty serious problems and make some huge mistakes that threaten the future of your business. With that in mind, think about these four common threats and consider whether you are managing them effectively.
1. Business Interruption
Regardless of where you live, natural disasters can happen at any time and leave your business unable to make a profit. Because of this, many businesses that suffer damage due to a fire, flood, or earthquake simply never reopen, because they don’t have the money to. This means that it’s vital that you’re prepared for such a threat. Unfortunately, your standard commercial property insurance won’t cover the loss of income caused by natural disaster, so you should consider buying business interruption insurance too, to cover you while you’re repairing.
2. Inventory Shrinkage
Inventory shrinkage refers to the loss of products your retail business culminates as the result of shoplifting, employee thefts, vendor fraud, and administrative mistakes, and is a huge problem for almost every retail store out there. The higher your shrinkage, the less money you’re making, and if the problem gets too bad, you might not recover. To avoid this, you need to invest in some proper security equipment, including surveillance cameras and alarms, and take inventory management seriously. You should also train your staff on what is and isn’t acceptable.
3. Cyber Crime
We live in a world completely dominated by technology and the internet, so it should be no wonder that one of your biggest threats is web-based. It’s vital that you invest in an IT department and proper security measures, including firewalls and the most accurate verification solution you can find. If you don’t, then hackers could steal your money and data, and the money and data of your customers and clients. This, of course, will costs you a lot of money, but it will also completely ruin your reputation, which is what will really drag you under.
4. Workplace Injuries
If none of your employees have gotten injured at work yet, then you’re in luck, because workplace injuries are actually a lot more common than most people think. In fact, millions of working days are lost each and every year due to injuries that happened at work, which cost businesses a lot of money. If you want to avoid this loss and keep your employees safe, it’s essential that you conduct a thorough risk assessment and combat any risk you happen to find. You should ask staff for their feedback and try to find other ways that you can improve safety at work.
If you want to keep your business safe, then consider the advice above, and do what you can to decrease the effect of these common threats.
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