Your business is your life- a venture you have set up out of ambition and passion. So if things go wrong, it can be extremely difficult to deal with. But things are rarely plain sailing for new companies, and even if you manage to stay afloat and even turn a profit, there are other things that can potentially go wrong that can really spell trouble. Here are a few of them, and are all things to watch out for.
Fraud and Theft
Fraud could come from a criminal outside your company, or it could be from within. Many cases of fraud are committed by members of staff. For this reason carefully selecting employees in the recruiting stage is important. You should always background checks such as a criminal history check and follow up any references- get a good understanding of their past and make sure nothing throws up any red flags. One way to easily prevent fraud within your company is to switch up people’s jobs now and again, this is because a second employee is then following up the work and will notice when things don’t quite add up. Fraud can happen in both larger and smaller companies, so it’s something to keep an eye on.
Loss of Data
Loss of data could mean big problems for your business. If you’re still using manual filing methods like paper documents, you will not only be slowing down the progress and efficiency of your company, but you put yourself at risk of losing data. These days, cloud storage is the only way to go. It’s efficient, safe, and you can also access this information from any computer. This is useful if you have some staff working from home. It’s better than storing it onto a computer drive as if something happens to the computer (theft, damage, malfunction) you don’t lose the data on it.
Bankruptcy is a difficult pill for any business owner to swallow. Perhaps yours was down to lack of planning, overspending or perhaps it was solely down to bad luck. Either way, accepting that your business is losing more money than it can gain back is unfortunate. You could go with a voluntary liquidation where you wrap up your company’s affairs and sell assets to creditors to reduce debt. One thing to bear in mind is that once you have recovered from your losses, many failed business owners often go on to set up a second, more successful company later down the line. Since you’ve lived through your mistakes and know what does and doesn’t work, you what to do differently next time and can be more careful and cautious.
Accident or Injury
Finally, accident or injury in the workplace can spell disaster for business owners. If a member of the public has been harmed on your premises, due to something your business has done (or not done), you could end up seriously out of pocket. To protect against this, every business should have public liability insurance. If employees are injured, it’s your job to issue them with a claim form and report to the workers’ compensation insurance company. Ensure you’re following the law to the letter when it comes to these kinds of things, if you’re found to be neglectful here it can land you in even more trouble.