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You are here: Home / Business / How to Avoid the 4 Biggest Business Risks

How to Avoid the 4 Biggest Business Risks

January 22, 2021 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

How to Avoid the 4 Biggest Business RisksThere are so many things that can go wrong when you run your own small business. You’re on a tight budget with limited time and resources, so even the most minor disruption can be disastrous for your success.

You probably want to devote all your time to growing the business and finding new customers, but if things go wrong, you will spend your days putting out fires and making frantic phone calls. To dodge this eventuality, it’s a good idea to take precautionary measures to avoid the most likely risks to your business.

To help you minimize the risk and keep your business in the green, here are the four most common business pitfalls and how to avoid them.

Table of Contents

  • Disruption
  • Legal action
  • Cyberattacks
  • Theft

Disruption

This is a relatively new risk for businesses, but it is currently one of the most disruptive. Restrictions and government guidance are changing all the time. One day it’s business as usual and the next you’re shut down indefinitely. Although there’s little you can do to change the course of a global pandemic, there are several things you can do to minimize disruption. One thing is preventing the spread of the disease within your workplace. If a single employee develops symptoms, you will likely have to send everyone home. Enforce social distancing regulations by keeping desks and workspaces well away from each other, and provide plenty of hand sanitizer and disposable face masks. If you’re unable to open the office for business, ensure your staff are fully equipped to work from home. You’ll need everyone to be set up with an online collaboration platform and have access to all the files they need through the cloud.

Legal action

All it takes is one mistake, and you could end up spending months in court and paying enormous sums in legal fees. The easiest way to avoid litigation is to do everything above board. That means storing data securely, treating your employees right, and following your contracts to the letter. It’s also wise to invest in liability insurance to protect you in the event of legal action. Keep legal counsel on hand in the form of a respected practitioner such as Wyolaw Law Firm. This will help you proactively avoid litigation in every contract and business decision you make.

Cyberattacks

In the digital age, cybersecurity is one of the most significant risks to any business. Hackers and cybercriminals are becoming increasingly adept at accessing private company data, so you need to ensure all your files are secure. Making sure your employees are using strong passwords is essential, and a password manager is an effective way to enforce this. Create a policy for using personal devices for work, which should include rules against sending company data across unsecured networks. 

Theft

Criminals who aren’t technologically minded are more likely to resort to traditional methods, such as breaking and entering. You likely keep valuable items like computers and cash on your premises, so you need to ensure your security is tight. Keep doors and windows locked at night and consider installing a security system to deter opportunistic thieves.

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