The routine tasks it takes to run a small business don’t leave a lot of time for thinking about much outside of the most pressing needs. However, if you overlook some of the risks your business will be up against, it can have some serious consequences further down the line, and jeopardise the future of the company. Here are a few big risks all new entrepreneurs need to be aware of…
History is full of examples where companies have been at the centre of some kind of scandal or tragedy, and haven’t handled it in the best way possible. The reputation of a company is a very valuable asset, and once it’s taken a certain amount of damage, it can be extremely hard to repair it again. When the fault lies with your company, the best response is being upfront, sincere, and admitting any mistakes you may have made. It’s good to be aware of any kind of freak incidents that your company is at risk of, and have a PR recovery plan that you can fall back on if and when these things happen. You should also make sure you’re keeping on top of cybersecurity standards, as these kinds of breaches can seriously hurt your reputation This brings me onto my next point…
Hopefully, you’ll never have to experience your business being the target of a crime. However, this is a very real possibility, and the more your operation expands the more risk it’s going to carry. If you’re setting up premises in an area that’s known for break-ins and the like, then you need to make it a priority to browse some local security companies and set up a contract that will keep you safe. Aside from the threat of traditional crimes like this, you also need to be aware of the growing, modern threat of cybercrime. Despite what you may have heard, small businesses are at much more of a risk of cyber-attacks than larger ones. Most hackers simply don’t have the resources to breach high-end firewalls, and will focus their efforts on low-hanging fruit like your company instead. Make sure that all your employees are clued up, have a good cybersecurity policy in place, and update your security software regularly.
Cash Flow Disasters
While some business models don’t need to worry about cash flow so much, it can present some big issues for a lot of other companies. Securing the cash you’re owed can often be extremely difficult. Clients may forget to pay on time, or even completely refuse to pay. Chasing after this lost cash can be extremely stressful, and take up time which you could be investing in more pressing issues. Make sure you have a contract in place before agreeing to take any work from a client, and don’t take your time when it comes to sending any invoices. Your cash flow may be totally stable for now, but if you don’t take steps to keep it this way, it can lead on to all kinds of trouble.