Small businesses must deal with a variety of risks if it really wants to remain in business. Almost one quarter of all small businesses are negatively influenced by risks they weren’t prepared for. Different business have different types of risk. Some kinds of risks, however, apply to all smaller businesses. Knowing which small business risks are most likely to affect your business will help you to take appropriate measures to prevent them.
External Small Business Risks
There are lots of external risks that may be quite damaging. General liability claims that result from slip and fall accidents or product/workmanship failure can be devastating financially. There are many external risks you can’t simply avoid. When you can fix your sidewalks and try everything you are able to to provide quality products and service, your very best defense is a quality commercial insurance plan. A great commercial policy will protect harm to your home in addition to most general liability incidents. It may even cover business if operations are interrupted as a result of natural disaster or other unexpected event.
Internal Risks
Many internal risks come from the employees. A work-related accident or perhaps an alleged discrimination incident can result in lawsuits. Employee theft is another problem. Small businesses with simply a few employees face exactly the same type of risk as larger companies. The only real difference is that the risk increases combined with the number of employees. The best way to avoid a number of these Human Resources-related risks would be to implement a zero-tolerance policy for all employees. Violations from the companies guidelines can lead to immediate termination.
Cyber Attacks
Almost every small company runs some type of computer program, because of their inventory and business operations or to manage their finances. It only takes one email and suspicious attachment to eliminate your company financially. A cyber attack can compromise your company records and damage your company’s reputation. Installing anti-virus program is simply the first step. Backing up your information for an hard drive will protect it from being lost or corrupted by any means.
Damaged Reputation
For a small business, reviews can make you or break you. Good comments are a great way to boost business. Bad reviews, however, can chase people away in droves. Another way to quickly damage your reputation would be to provide poor customer service. Ineffective products and workmanship will also be damaging to your reputation. With reviews, you should use the feedback to enhance your business. Good customer support is a must. Have a few minutes and review all of the areas of your company in which you have experienced a negative backlash. Use that information to improve your business all around. Mitigating small business risks is an integral part associated with a business. Know your risks. Learn to correct them. Take active steps to enhance your company on every level. While you will invariably face some degree of risk, there are methods you can protect both you and your business. Taking control of your risks can help you improve your reputation and your company growing.