5 Threats Your Small Business Should Watch out For | Evolvor.com

5 Threats Your Small Business Should Watch out For

Those who run their own small business often say that managing a small company is dealing with one crisis after another. This may sound stressful, but it’s also one of the most exhilarating things you could do.

Most of the small businesses need to deal with a few similar threats that are manageable if you prepare for them in advance, but they could also stop a company in its tracks if you don’t tackle them right away.

Property

A commercial property is among the most important assets a business owner can have. It’s usually too expensive to be purchased right away and it requires long-term loans to be repaid. Choosing a good property is also a complex business decision that has an effect on what kind of customers and what kind of employees you can pursue.

All of this is to say that a business needs to protect itself from property loss or damage via an insurance plan. It’s an additional expense that can be troubling for a small business, but there’s no real alternative.

Losing key personnel

A company is only as worth as its employees and there’s no greater threat to the company than losing one or more of the talented workers that generate profit for the company. However, this often happens because employees try to be flexible with their careers and are always on a lookout for better job opportunities.

Higher wages and bigger bonuses can help with this, but they are rarely the thing that convinces the employees to stay. Most of the time, good working hours and a friendly corporate culture attract more employees and create more loyalty than any bonus can.

Security threats

Small businesses are always under threats from break-ins, but also from shrinkage because they have a lot of employees and not all of them can be trusted. That’s why it’s imperative to invest in a good security system that covers both the possible break-in points and the work area, especially those where money and products are being handled.

Companies such as JD Security provide the Genetec Omnicast system that covers all the bases for a small business security, but can also be upgraded in case the business and its security needs tend to grow.

Taxation

It’s wrong to think about taxation as a threat because every business relies on numerous governmental agencies and services and that’s what the taxes are for. However, it’s easy to see them that way because they present a real and difficult burden for small companies that need all the funds they can get just to stay afloat.

In order to work around, but still comply with complicated tax regulations, a small business needs to invest in a tax attorney that specializes in the industry it’s working in. These professionals could also help with getting access to grants and better loan rates, which makes them an indispensable asset to the business.

Competition

The biggest worry for most business is losing the customers to competitors from their own community. New businesses are opening their doors almost every day and there’s always the excitement of novelty that drives the customers into the hands of the competitors. It’s something that can’t be changed, but there are ways to mitigate the problem.

A good marketing campaign is always helpful, but it can’t create customer loyalty. That can be accomplished only by providing a product and a service that the customers identify with and that they can trust.

Small businesses are always under a lot of pressure and they need to establish relationships and systems to help them fight it. The most important of these are about safety and insurance.

 

Eric Hebert

Founder and Lead Digital Strategist