Running a company is a serious endeavor. Not only are you trying to find new customers, serve existing customers, and earn a living, but you are also providing others with the opportunity to earn an income.
If your business were to close down, how many people would become unemployed? It wouldn’t be just you.
And since it’s not uncommon for businesses to shut down out of nowhere, you need to take every precaution to ensure your company is going to last. Business threats come in many different forms. Some are obvious, others are hard to see until it’s too late.
Wondering what the biggest threats in business are? Keep reading our list of threats in business to find out what you need to be prepared for.
1. Lack of Insurance
No matter what type of business you have, you’ll need multiple different insurance policies. There are too many things that can go wrong, internally and externally. If you aren’t properly protected, you could lose thousands, if not hundreds of thousands of dollars at a moment’s notice.
You’ll want a general liability policy to cover your business in the event that someone gets hurt on your property or while using your products. If you offer specialized advice, you’ll want professional liability insurance, in case something goes wrong when a client follows your advice.
You’ll need insurance that covers your property, your equipment, your assets, and your vehicles. And if you have employees, you need to have worker’s compensation insurance.
Sure, it can cost a lot of money up front by paying for multiple insurance policies. But it’s far better than the alternative. One lawsuit could forever derail your financial future.
2. Cyber Attacks
One of the biggest concerns for business owners in our day in age is the threat of a cyber-attack. Hackers are everywhere. And more often than not, they create virtual robots to attack any and every company.
It’s not a matter of if you’ll be targeted by cyberattacks, it’s when. You need to be prepared from day one.
If you aren’t, hackers can gain access to company information. They can take hold of your virtual assets, such as social media accounts, email platforms, and your website.
They can access financial information, putting your money at risk. And they can also access customer information since it’s almost always stored digitally by businesses.
And when this happens, you can expect countless lawsuits, as you were the one who didn’t safeguard customer information. This is how businesses disappear forever.
Luckily, protecting your business from virtual attacks is easy when you work with an IT and cybersecurity company that can handle all of the details for you. Visit https://www.semtechit.com/our-services/managed-it-services/to take care of your digital security once and for all.
3. Losing Top Employees
It takes a lot of work to find talented employees. As a result, it costs both time and money. Plus, you need to train them, which takes even more time and money.
One of your biggest threats as an owner or manager is losing your top employees. Sure, there are occasions where it’s out of control, such as employees moving out of the area. But more often than not, it’s in your control.
People often leave in search of a better work opportunity, greater responsibility, more pay, and a healthier work environment.
Maybe you can’t increase salaries. What are other ways you can help to retain your employees?
Could you be intentional about crafting a healthier, more enjoyable work environment? Can you work with your employees to find out what their goals are, empower them with additional responsibility in order to reach those goals?
There are always ways you can encourage employees to stay. Sometimes it costs more money; many times it doesn’t.
4. A Single Revenue Stream
Far too many businesses rely on a single source of income. This is a dangerous move, considering the economic landscape is always shifting. There are many things that could cause your current income stream to shrink or disappear entirely.
External threats to a business can include things like civil unrest or natural disasters, making it unsafe for customers to physically visit your location. These business threats examples can last days or even weeks at a time.
Other times, a pandemic shuts down our economy for months on end. And companies that rely on a single source of income are the most at risk.
Think about restaurants. Most rely on a single source of income; customers come into their restaurant, sit down, and eat.
But what happens when a pandemic closes your doors to physical customers? Either you shut down or you pivot. Smart restaurants focus heavily on takeout orders. They may also start offering delivery.
They can even begin offering catering services, bringing the restaurant to other people when people can’t visit them.
Nothing will slow your company down more, limiting your growth, like perfectionism. While the pursuit of excellence is noble, the obsession with perfection is a disease.
When things need to be perfect, you’ll often find yourself criticizing others, demanding too much, and delaying projects time and time again. Rather than slow progress in your company, just ship it. Get your new product, service, or update out the door when it’s good.
It doesn’t have to be perfect. Then, get feedback and make alterations. Understand that perfection is a process of refinement.
6. Micromanagement and Control
One of the biggest threats in a business environment is the owner, manager, or leader. Oftentimes, they try to do everything themselves.
Or if they don’t do it themselves, they require everyone to get approval from them before finishing a project or making progress. Thus, they become a bottleneck.
Instead, learn to delegate and empower your team to make decisions, take action, and do what they think is right. Even if they make mistakes. While it’s your job to set the vision for your company, you can only progress as far as you let your team go.
Safeguarding Your Company Against Common Business Threats
As you can see, there are many different types of business threats. Some are external, coming from the outside world, totally out of your control.
Others are born on the inside, growing and building, often without you realizing it. That’s why it’s important to listen to feedback from your team, as well as get professional coaching in order to become a better business leader.
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