Every small business owner has to navigate choppy waters and negotiate risks. It’s not always easy to avoid icebergs and stay afloat, but planning ahead and being aware of dangers can be hugely beneficial. In this guide, we’ll discuss common risks facing business owners and explore strategies you can employ to protect your company. 

Security

In days gone by, securing your business meant investing in alarm systems or CCTV. Today, there is a more diverse range of threats facing small and medium-sized businesses. Globally, the cost of cybercrime is expected to reach $6 trillion by 2021. We often assume that hackers only target large-scale corporations because those are the stories that make the headlines, but statistics show that small businesses are more at risk than ever before. Around 70% of ransomware attacks in 2018 involved small companies. 

As a business owner, there are several steps you can take to strengthen your digital defenses and lower the risk of data breaches. Outsourcing is one option you could consider if you don’t have any IT experts on your team. With managed security services, you have access to the latest systems and technology to protect your networks and devices, you can take advantage of expert advice to help you streamline and improve IT operations and disruption will be minimized if there is an attack. To find out more, you can visit Spectrumwise. It’s also beneficial to undertake training and to provide training for your staff, to implement security policies and to introduce measures such as multi-factor authentication. 

Cash flow

Cash flow issues are among the most common causes of small business failure. Sometimes, it can be incredibly difficult to balance the books, especially when factors that are beyond your control, for example, economic or political uncertainty, impact sales and demand. To reduce the risks of financial problems, plan in advance, keep a close eye on your accounts and try and pre-empt and address cash flow issues as quickly as possible. Use budgets and forecasts to manage your money, adopt stringent payment policies and take steps to lower outgoings and boost sales if you do start to struggle. 

Reputation

Did you know that over 80% of people trust online reviews as much as referrals from friends and family? In recent years, reviews and ratings have become more commonplace, and they now play an integral role in the decision-making process when consumers are on the hunt for products or services. When you run a business, you want prospective customers to have a positive perception of your brand. Go the extra mile to provide excellent customer service, don’t make promises that you can’t deliver, prioritize quality and value and engage with your clients. Every customer should feel valued. 

There are many risks involved with running a small business. If you’re keen to shield and protect your company, plan ahead, keep a firm grip on your finances, invest in cybersecurity and take steps to improve customer service and enhance your reputation.