You have worked hard to make your small business successful, but a successful business is always vulnerable to several risks. The ever-changing economy, the growing competition, and other factors may pose a threat to your business. How can you protect your business from these threats and make sure your dreams are not shattered? Let’s dig in.
Safeguard your small business from getting sued
Lawsuits should be avoided as they are expensive. Even if you win, you have to spend a lot of time and money. It is better to avoid them.
- Avoid doing businesses that are questionable and avoid doing business with immoral and corrupt people.
- Avoid making controversial public statements. This will affect the image of your business.
- Separate the finances of your business from personal assets.
- Hire a competent attorney who is experienced and familiar with local laws, taxation laws and others.
Also Read: How WhatsApp Business Can Help Small Businesses?
Safeguard your small business with the right insurance
Here are a few insurance policies that are essential to protect a business from risks.
- Professional liability insurance gives you protection from unexpected omissions, errors, and negligence while conducting business. If the clients are affected, they may sue your business legally. This insurance gives you protection from the claims made by the clients.
- General liability insurance protects you if a client is physically injured or the client’s property is damaged because of an accident for which you are responsible.
- Cybersecurity insurance provides you protection from data theft and hacking. Such policies provide support for data recovery and coverage of losses for the period the business is affected because of data theft.
- An insurance policy for unexpected damages caused by natural disasters like rain and storm and accidents like a fire is recommended.
Also Read: What are the best accounting practices for small businesses?
Safeguard your business from a data security breach
A study shows that more than 60% of businesses are out of business within six months if they are victims of a data breach. Here are a few tips to avoid it:
- It is better to follow two-step authorization instead of a single password system.
- A firewall network security system is worth the money spent as it gives protection from malware and virus attacks.
- Your employees should be trained and taught to use strong passwords and to identify suspicious links and attachments. They should be aware of phishing scams.
- It is wise to invest in legitimate software.
- Create backup copies of all important business information and data.
- Wi-Fi networks should be secured.
- Employee access to data should be limited.
- Consult an expert and get data security recommendations.
Also Read: Top 5 ways small businesses can reap the benefits of global holiday seasons
Safeguard your business finances
You should have control over your business finances to avoid employee frauds and financial woes.
- Small business loans are inevitable. You have to take multiple loans to grow your business. However, you should make sure that you don’t exceed the limits because repayment and interest payment may affect your business operations.
- Keep a check on bank statements.
- Never make the mistake of pre-signing checks.
- Keep a close watch on petty cash.
- Protect your cash reserves.
- Consult an experienced auditor to give you updated information on tax changes.
- Avoid doing business without a contract and conducting a credit check on the client.
- Keep monitoring the cash flow of your business and its credit.
Also Read: Merchant Capital Funding – A shot in the arm to small businesses that require working capital
Safeguard the intellectual property of your business
Business secrets and intellectual property like ideas, patents, and others are more valuable than the assets of your business. It should be protected in all possible ways.
- Make sure the areas in which your intellectual properties are stored are secure. They should be protected against unauthorized access.
- Usage of unauthorized cloud services should be avoided.
- Keep track of your intellectual property with the right monitoring system.
- It should be protected both physically and digitally.
- Your employees should be educated about intellectual property protection to avoid leaks and plugins.
- There are lots of tools to protect intellectual property. Use them.
- A trademark stops your competitors from using the same name and same design.
Also Read: 4 Reasons why unsecured business loans have emerged as the lifeline of small businesses in India
Safeguard your small business from competitors
Competition is unavoidable in all businesses. You should outsmart your competitors if you want to protect your business from them.
- Design a product that is not easy to copy.
- Your product should be unique that people will miss if you leave the market.
- Never stop innovating.
- Build your business brand as early as possible.
- Focus on a specific niche.
- Make your customer think your business is a valuable resource.
- Be prepared to face price wars and launch counterattacks.
Also Read: Need Money Fast? 4 Options For Small Business Owners
Safeguard your business name
Shielding the identity of your company is important. Here are a few measures to protect the name of your company and shielding its identity.
- Register the name of your company legally.
- To avoid the negative consequences of others misusing the name of your business, it is better to register your domain too.
- Incorporate names similar to your business names to avoid others registering them.
Also Read: 6 Smart ways for small businesses to use a line of credit to their advantage
Safeguard your small business from failing
Take the necessary precautions to prevent the failure of your business venture.
- Make sure you develop a clear marketing plan. Set attainable goals. Track, measure and make changes whenever and wherever necessary.
- Hire the right employees as an unsuitable team of employees could ruin your business.
- Analyze the day-to-day operations of your business and find out if they are effective. A SWOT analysis (strength, weakness, opportunities, and threats) will be of great help.
- Leveraging the right technology is important for the success of small businesses.
- Make accurate projections of revenues and losses before taking a small business loan. Make sure you avoid high debts.
- Prepare your business for bad times like a recession.
- A small business needs to step out of its comfort zone but be sensible in the risks you take.
In case if you are looking business loan without security for your small business, then Indifi is the NBFC platform to apply for.