3 Ways to Protect Small Business Properly

(doylc.com) How To Protect Small Business - Most small businesses start as simple ideas and grow into successful businesses because of the drive and entrepreneurial enthusiasm of their owners. As your small business becomes more successful, it also becomes more vulnerable. There are many potential disasters that can damage your business, and you must be prepared to defend yourself as you grow. Protect your small business from technological, financial, and reputational threats by being prepared and vigilant with prevention strategies.

• Protection against financial threats

Protect your small business from potential lawsuits. Lawsuits can be expensive, even when you're sure you're going to win. You still have to pay for legal representation and spend a lot of time defending your business.

Watch your actions and words. Avoid doing business with individuals with known unscrupulous behavior or engage in questionable business practices.

Watch out for conflicts of interest. Also, avoid situations that could be perceived as suspicious.

Insure your small business. Make sure you have adequate liability insurance and consider additional coverages like fault and omission insurance or a D&O (D&O) policy if you work under a board of directors.

Assess your ability to withstand a disaster. An unexpected disaster like a fire or hurricane could destroy your business and leave you with no income or plan to rebuild.

Talk to your insurance agent about what's appropriate for your small business. Every company has different needs.

Develop a contingency plan. In the event of a disaster, you and your employees should know exactly what to do. Add plans for inventory, technology, and how you communicate with your customers.

Watch your money and your winnings. Put checks and other controls in place to avoid getting robbed or losing your hard-earned winnings.

Be careful who you hire. Conduct background checks and vet all employees and consultants, especially those with access to company finances.

Check your company finances at least quarterly.

Demand timely payments from customers and clients. Waiting for payments can lead to liquidity problems. Insist on payment for services and goods within a reasonable time, e.g. B. 30 days.

Work with a good tax attorney or financial advisor. Small businesses are entitled to many tax breaks. Make sure you use all of them.

• Protection against technological threats

Understand cybercrime and your organization's vulnerability. Hackers often target small businesses because they have less computer security than large companies.

Protect all your data and intellectual property. Use antivirus software and install a firewall on your network.

Hire an IT professional to conduct a risk assessment and recommend additional actions. A data breach could harm your small business, especially if a hacker can access your or your customers' financial information.

Keep your intellectual property in your own hands. Application for intellectual property (IP) protection with the US Patent and Trademark Office.

• Protection against threats to your reputation

Use social media responsibly. While most small businesses can benefit from Facebook pages and Twitter profiles, remember that digital dialogue can engage people who are unhappy with your business.

Use online conversations to promote your products and services, and invite your clients and clients to discuss what they enjoy about working with you.

Don't overreact to negative comments. Deleting anything that reflects unfavorably on your small business can do even more damage to your reputation. You want to be transparent. Have a trusted customer or supporting partner respond to any attack on your business with a positive story or testimonial.

Develop a crisis communication plan. If something happens that can damage your reputation, you need to be prepared. Prepare a plan to respond to customers, media and other stakeholders.

Consider working with a PR professional. Keeping a PR team on hand could be prohibitive for your small business. However, talk to PR professionals about hiring their services on a project basis.