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In an ideal world, your business would simply go from strength to strength without experiencing any difficulties whatsoever. Alas, last time we checked, this is not an ideal world. Running a business can present itself with a whole host of issues which, left to their own devices, can cause big problems for your business.
Happily, many of the more serious issues that can affect your chances of success can be mitigated by taking a proactive approach. In this post, we’ll outline four common threats to your business, as well as outline what you can do to keep them at bay.
Photo by Lukas
High Employee Turnover
Hiring great employees is a good starting point, but what matters is how long they stay with your business. Continually having to replace departing members of staff can have a hugely detrimental impact on your budget, since finding, hiring, and training employees usually comes with a high cost. Plus, high employee turnover can also impact productivity and damage staff morale.
There are multiple ways to reduce employee turnover, including paying well, fostering a supportive and friendly atmosphere, and having an open-door policy so employees feel comfortable airing any complaints or grievances.
Cyber Crime
Cyber attacks against businesses aren’t just on the rise; they’re also becoming more costly in the past couple of years, with the average attack costing a whopping $4.48 million. As such, businesses of all sizes must take steps to keep their sensitive data safe. Failure to do so doesn’t just risk costly expenses, but could also result in the permanent closure of the business.
Since cyber security has become increasingly complex, it’s recommended that businesses simply hand the task over to a company that offers cyber security managed services; they’ll ensure that your technological infrastructure is well protected from the threats of cybercriminals. As well as investing in digital security, it’s also important to educate employees on the importance of following cyber safety protocols, such as selecting strong passwords and avoiding using public wifi.
Losing Customers
Having a long list of customers is great — but things can quickly become problematic if you begin to lose customers. That can happen for multiple reasons, including the arrival of a new competitor and failure to evolve as a business. Just because your customers are happy with your products/service today, that doesn’t mean it’ll automatically be that way in the future. Continually improving your services and gathering feedback from your customers will ensure that your customers are just as happy tomorrow as they are today.
Cash Flow Problems
Cash flow problems are one of the main causes of business failure, so it’s essential to make sure that your business’s cash flow is always in healthy condition. Even businesses that have plenty of customers can run into trouble if their cash flow is not managed correctly. Working with an accountant can help highlight any potential cash flow problems early, while it’s also recommended to find ways to encourage your customers to pay their invoices as early as possible.
