How To Protect Your Small Business
As a small business owner it is important that you take precautions in order to protect your business. One accident or deal falling through could cripple the business or even shut it down. Unlike larger corporations a small business does not have a large amount of capital to throw at problems that have compounded. The best thing that a small business owner can do is to be proactive about reducing company risks. The following are ways that a small business can protect itself and what can happen if you do not take these precautions.
A small business being robbed can be a nightmare as replacing everything will take time and money even if you have insurance. The insurance will not cover the loss of production as people who are on salary still need to pay their bills. Security can be as simple as installing a security system for businesses or pitching in with other businesses in your location for a night security guard. These guards usually come at reasonable rates and the peace of mind it will deliver will be equally satisfying.
The last thing that you want is a law firm specializing in personal injury compensation filing a suit due to an employee or customer hurting themselves in your business. Doing safety training periodically is imperative as people at times forget proper procedure for doing things. People like that of electricians could lose their lives if proper safety precautions are not met. This might seem like a loss of valuable time but it is better than someone being hurt in your place of business.
Document HR Related Issues
Former employees can be a nightmare to deal with especially if they feel like they were terminated unfairly. Filing lawsuits does happen so make sure that everything to do with infractions and write-ups are all signed and documented. Sending emails to confirm receipt of things is also another way to make sure that you have proof that a person acknowledged a write-up. Get all of the documentation together when you are going to fire this person as they might want to know exactly why. This could include production numbers dropping or consistently being the worst at the business. When people see that you have done this they will most likely not file any type of lawsuit as there was proof. This does not mean however that they will not beg for their job despite the mountains of evidence in why they shouldn’t have one.
Get Ironclad Contracts Written Up
The last thing that a small business needs is a contract dispute with a large client. This client refusing to pay for work that has been delivered can put a strain on the company’s cash flow. Invest in a legal professional to write up these contracts to make sure the language protects your business. Be especially clear with payment terms as foggy payment terms could lead to disaster. Unfortunately larger companies at times try to take advantage of small companies with the thought the small company needs them as a client….which is sometimes true.
Protect your business as you have worked hard to build it up to where it is today!