by Sharon Jones
It’s no secret that the statistics related to the success of new businesses make for bleak reading. With survival rates low, it’s crucial to be aware of threats and risks and to take steps to avoid obstacles. If you’re launching a new venture, or you’re hoping to grow an existing business in the future, here are some of the most potent dangers and some tips to help you steer clear of trouble.
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Cyber Crime
Forbes estimates that the global cost of cyber crime will reach over $6 trillion by the year 2021. We tend to think about security breaches affecting multinational corporations because these stories make the headlines, but cyber crime is a threat to businesses of all sizes. Investing in security measures and enforcing policies is critical for protecting your employees, your customers and your reputation. If you don’t already have sophisticated systems in place, and you’re not taking advantage of features like browser isolation, now is the time to seek advice from IT professionals and to investigate software and tools that can be used to batten down the virtual hatches and prevent intruders from gaining access to sensitive data. If you don’t have an in-house IT team, this is an area you may wish to consider outsourcing.
Negative reviews
We live in an age where reviews and ratings carry a huge amount of weight. Up to 90% of us check reviews before buying a product, and we’re more likely to buy items or invest in services that have been recommended by others. As a business owner, it’s essential to make an effort to attract rave reviews. Even a single comment can affect your reputation and push customers in the direction of rival firms. Customer service is key when it comes to gaining high scores and positive feedback. Encourage your clients to leave comments and rate the service, and use this information to make changes or address weaknesses.
Financial difficulties
Most companies fold due to a lack of cash flow and an inability to balance the books. Whether you own a new business, or you’re well-established, it’s vital to keep a close eye on the balance sheets and to try and preempt any problems. Keep your books in order, run a tight ship and use budgets and forecasts to help you plan in advance. If you do spot potential issues when looking through the books, try and address them as a priority. Financial difficulties can soon spiral out of control, but there are often steps you can take to bridge gaps or give yourself more time to settle bills.
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Running a business is notoriously difficult, and there are challenges at every stage. Whether you’re in the early days, or you’ve been around for years, it’s beneficial to be aware of potential risks and to plan ahead to nullify threats. Invest in cyber security, focus on providing an excellent service and keep a firm handle on your books. It’s not always possible to avert problems, but being aware of obstacles and hurdles can increase the chances of survival dramatically.