Startups Can Face These Issues If Not Properly Prepared

Startup life is fast paced to say the least with every deal being important to the future of the company. This fast pace leads many founders and managers to forget about taking care of important things. The most important thing that a founder can do is to be proactive and have checklists for things that need to be done. Without writing everything down it is quite easy to forget something even if it is massively important. The following are issues that can arise if a startup is not prepared as well as ways to prevent and deal with these issues.

Data Leak

Not securing a website that holds customer information like credit cards or social security numbers is asking for trouble. One data leak can lead customers to never purchase from a business again as they have breached the trust of the consumer. Never put ease of use in front of security as even some of the most secure sites have been hacked in the past few years. You should also keep people on a need to know basis when it comes to certain passwords to get into valuable information. A disgruntled employee can ruin relationships by leaking passwords or other information the company holds.

Contract Breach

Contracts are breached more than many people think even by the most reliable of companies. This is not the time to just chalk this up to chance but it is time to fight. Lawsuits can be expensive so looking into loans or law firms that pay once you have won are the best options. Visit resources online to find out if you qualify for a loan that will help keep the business afloat. Keeping a lawyer on retainer or at least having a professional write up contracts is another way to protect your business. Sydney compensation lawyers for example could also help if an employee is hurt while performing a job for a client. The client could have been negligent with their safety precautions so look into all accidents as your insurance shouldn’t go up due to the mistake of another company.

Employees Leaving For Competitors

Employees leaving for competitors happens more than many people think as well. Getting new hires to sign an NDA can solve this quite quickly as nobody wants to be financially liable for working for a company that is a competitor. This will help reduce any chances of former employees leaking secrets or even giving insight to your current strategies.

Cash Flow Problems

Cash flow problems can come from payment terms for clients which can dry up the money that is used to do business on a day to day basis. Negotiate favorable payment terms for both parties. If a client is resistant to this then you need to be honest with them. Their business is not important enough to under deliver to other clients and risk paying your employees late. Keep different clients on different payment schedules so you consistently have money coming in throughout the month if possible.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.