No Cash To Burn? Then Make Sure You Avoid These Missteps
Are you prepared for the biggest financial issues that could hit your company? Approximately 97 percent of new businesses fail in their first year. Why is this? Believe it or not, in most cases it’s all about the money. The business has either overspent or been hit by a heavy cost that they couldn’t recover from. To avoid this happening to your company, you need to be aware of the costs we’re talking about and understand exactly how to handle them. In some cases, it’s all about the steps you take before the problem has even occurred.
Lawsuits
Yes, you could be hit by an expensive lawsuit at any point as a business owner. The most common lawsuits that damage businesses are the ones where an employee has sued for an injury. Premises liability should be a very real concern for any business owner who runs an office or company property. If anyone is injured on the property you can be held legally accountable. This might even be true if you are renting the business office. Landlords often make sure they pass on this particular responsibility to the business tennant. The best way to avoid a premises liability lawsuit is to not run an office at all. Instead, work from home, using freelancers or outsource companies to staff the business. Do that and there are very few lawsuits that can actually hit you. If this isn’t an option, you’ll need to make sure health and safety is kept to exceptional high standards at all times.
Tech Trouble
On the modern market if your tech crashes your business is out for the count. It’s as simple as that because you won’t be able to sell to customers or pick up new business clients. A disaster recovery can take anything from a few minutes to a couple of months. It depends whether you were prepared for it. For instance, your IT company might have given you an online server backup. If that’s the case, you can keep running even if your tech does crash. As such, you might want to contact your IT support team and make sure they have this setup for you. If they don’t, and your tech fails you’ll be left twiddling your thumbs until they can fix the original.
Demand Downturn
Drops in demand can happen for lots of different reasons. Perhaps the marketing wasn’t there, or maybe you simply overestimate the longevity of the product. It doesn’t matter what the reason is. The fact is that now you’ve got a problem. Your company isn’t making enough money to stay in the green and eventually, this is going to drive you into debt. The best way to avoid this cost is to make your business as efficient and effective as possible. Time is money and if you’re wasting time you’re losing money. It’s worth getting the people high up in your company together to brainstorm and make sure there are no areas of your business costing a fortune.
Each of these issues can cost your business thousands. But they can also be easily avoided if you take the right steps now.
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