Starting and owning a business can be a fulfilling and exciting venture that offers one the chance to watch their dreams become a reality. Unfortunately, some challenges can arise that threaten the success of one’s business and all of the hard work which one put into it. There are always risks and threats trying to cancel out all of the hard work you put into your company.
These challenges can come as a complete surprise to many business owners, and in some cases, can mean that one has to call it quits and shut down their business. Luckily, the threat of these challenges can be greatly diminished if one is aware of what problems to look for as a business owner. Knowing what to look out for can make the process of running a business safer and more secure. Everything you can do to manage risk and lower liability is worthwhile these days.
Here are 4 specific threats to keep an eye out for within your business.
1. Data Theft And Computer Hacking
Computer hacking can be a dangerous and sneaky threat to your business if the proper safeguards are not taken. Computer hacking occurs when hackers modify software or hardware to illegally gain access to someone else’s computer network. In a worst-case scenario, a computer hacker could potentially gain access to a business’s financial, personal, and account information.
Business owners should be wary of cyberattacks such as computer hacking and take the proper safety measures to ensure that they aren’t vulnerable to these attacks. These measures can include integrating multi-factor authentication and cyber security software onto one’s business’s computer network. By being aware of the potential risks of cyberattacks such as computer hacking, business owners can keep their businesses safe and stay on the lookout for potential threats.
2. Accounting Fraud
As much as everyone wants to trust their employees, business owners need to vet and continually keep an eye on any employees who have access to sensitive accounting and financial information regarding one’s business.
Accounting fraud is strikingly common in the form of asset misappropriation, with 86% of corporate fraud cases falling under this category. Business owners can safeguard themselves against this threat by being diligent about who they hire and who they allow to have access to sensitive accounting and financial information.
In addition, business owners should regularly look over their account statements to have a clear idea of the financials so that anything fishy will stand out. Being aware of the frighteningly common crime of accounting fraud can make business owners better able to keep their company safe and steer clear of fraud within their business.
3. Supply Chain Problems
Many businesses take for granted their smoothly running supply chains that allow them to keep their supplies coming in a steady stream. Unfortunately, in light of the COVID-19 pandemic, many business owners have had to reckon with the disheartening reality that significant problems can arise in supply chains.
When this happens, businesses can be negatively affected and may even, in some cases, cause businesses to have to shut down completely. Business owners’ intent on keeping their business thriving should be clear about their supply chains and understand the potential consequences of having supply chain challenges. By having a plan in place for unfortunate supply chain problems, business owners can ensure that their business will not have to shut down if their supply chain goes south. Business owners should also be prepared for price increases even if materials and inventory are available due to inflation and decreased supplies.
4. Losing Top Talent
Talented employees are vital to any successful business operation. Retaining these talented individuals is a challenge that many business owners must grapple with when growing and maintaining the success of their business. Losing the people that make one’s business successful can be a disheartening challenge, but luckily, steps can be taken to minimize these setbacks. There are many ways to incentivize talented individuals to stay with your company.
These included offering competitive wages, and bonuses, and having a positive work environment that employees enjoy being in. By catering to talented individuals in one’s business, business owners can ensure that they are minimizing the threat of losing talented individuals that help make their businesses successful. Finding and training new talent is significantly more expensive than retaining existing employees, so keep that in mind at all times.
Maintaining A Successful Business
Business owners can take various steps to ensure that their businesses thrive and avoid threats that could harm them. An important step is safeguarding oneself and one’s business against destructive threats that could potentially ruin one’s business.
By being aware of these threats, and taking action to avoid them, business owners can avoid the pitfalls that many others may fall into and maintain a thriving and successful business.
