Did you know that around 80% of businesses will fail within the first five years?
Business is full of risks and challenges that you and your staff will have to deal with on a daily basis. If you aren’t prepared then you might end up in that 80%. This is especially true for smaller businesses. In order to keep these risks and challenges at a minimum, you need to find ways to safeguard your small business and grow effectively at the same time. But what exactly are these safeguards and how can you apply them properly?
How You Can Safeguard Your Small Business
Safeguarding your small business is a great way to ensure that you will be able to keep growing without having to deal with business ending problems. Luckily for you, we’ve made sure to compile an excellent list of the best ways to safeguard your small business from an assortment of risks and problems.
Never Forget That Your Customers Are The Cornerstone of Your Business
The cornerstone of any business is the customers. They ensure that your business grows effectively and you have enough money to continue operating. Your customers can even promote your business for free through social media, word of mouth, and promoting your products. A great way to do this is taking the time to review the wants and needs of your customers.
Pushing out surveys, and collecting feedback from customers that visit your store will make adjusting your business to their needs and wants easier. It also gives your customers the impression that you’re genuinely interested in providing them the best services and products available.
Take Advantage of The Internet
You may be wondering how making use of the internet can help you safeguard your business. The answer is simple, yet effective: The internet gives you more options for improving your business and handling problems.
Small businesses can easily compete against much larger companies. There is not much of a gap between a small business and larger companies on the internet. Getting started on the internet is as simple as creating a page or group on social media. However, you need to make sure that you invest time, manpower, and money into it so that your online presence isn’t half baked or hollow.
As for handling problems, you can quickly find effective guides like this article in case you’re not sure of what to do. The best part is that you can reference the opinion of multiple individuals and come up with your own unique solutions to the problems that you’re facing.
Do Your Research Regarding The Industry You’re In
Having the right type of information can be a game-changer if you’re trying to safeguard your small business. Information on your industry lets you take advantage of laws and regulations that protect your business. It also lets you avoid any problems that come from not knowing about a certain part of your industry.
Do A Credit Check on Possible Customers or Clients
The customers or clients that you work with can be a source of problems for your business in one way or another. However, there is one great way to identify these types of customers or clients from a mile away: A credit check.
A credit check will show you just how your future client or customer pays their other creditors. If you notice that they’re paying several months late then you might be in trouble if you decide to work with them. Now that you’re aware of the risk that they pose, you can avoid the future headache that you will get from providing them your services or products.
Make Sure That You Keep Records
A great way to effectively safeguard your business is to make sure that you keep records of transactions, debts, and any other paperwork that may need keeping. Your documents will serve as a way for you to find any problems that may arise in the future. For example, if a client is refusing to pay you for whatever reason, you can simply pull out the transaction details from your records and use that in the argument. The paper trail that you left behind will make pulling those transactions easier.
Keep Your Data Secured
One of the worst things that can happen to a small business is a data breach. A data breach could mean that valuable data is stolen, or destroyed. These usually include customer details, and credit card information where the privacy of your customers are at stake. Not only will you have to deal with the data breach itself, but you also have to deal with the angry customers who have had their details stolen. So you need to make sure that you keep your data secured by using firewalls, or antivirus programs.
Have a Signed Contract
If your business focuses on providing services then it is imperative that you have a signed contract that protects your interests. You cannot imagine how many clients we’ve worked that didn’t have a signed contract and have suffered the consequences of it. Word of mouth is no substitute for a client’s signature on a contract since word of mouth doesn’t hold up in a court of law.
Use a Personal Guarantee
Another great tool in any business’ arsenal is to have a signed personal guarantee. A personal guarantee is similar to a contract where it protects your interests against clients who want to skip out on paying you. There is, however, one key difference; A personal guarantee makes the individual who signed it liable in case their business goes under. So in case a client owes you and their business goes bankrupt, a personal guarantee makes sure that you can collect the owed amount from the person who signed it.
Collect The Debts That Your Clients Owe You
Safeguarding your business shouldn’t only protect your data. You should also ensure that you protect yourself from clients wanting to skip out on paying your fees. You end up providing a service, but not being compensated for it. Not only do you lose out on the fee itself, but you also end up setting a precedent that clients can freely get away with it.
The two main ways you can safeguard yourself from these types of clients is to either have a lawyer on call ready to take on the issue, or have a collections company like Adams, Evens, and Ross Staffing help you collect the debt. Either option ensures that you have a way to keep your clients’ debts from piling up and risking the safety of your business.
Safeguarding your small business should always be at the top of your priority list if you want to succeed. With our tips and tricks helping you protect you and your business, you should have no problems pushing your business forward.