Take a look at some of the most common disasters that can affect a business so you can work out how you would respond to each one.
Cash Flow Problems
Businesses need to have a steady stream of capital coming in. If this gets interrupted for some reason, such as suddenly losing a major client, you need to work out how you will keep your business afloat. Think about which areas of your business are absolutely essential, the cutbacks you could make to keep going and how you could run the company more efficiently. Keeping careful track of your ingoings and outgoings, as well as setting some funds aside, will put you in a stronger position if the worst should happen.It’s the nightmare scenario for business owners all around the world. Just when everything seems to be running nicely, suddenly a disaster strikes and shakes the foundations of the company that you have worked so hard to build up. Disasters come in both natural and manmade form, but both can have a devastating impact. Simply planning for all the different things that could go wrong puts you in a stronger position, as well as setting your mind at ease that you are well prepared.
Natural Disasters
Depending on where your business is located, you may well have to consider being hit by natural disasters such as earthquakes, floods, fires, tornados or ice storms. Having an emergency notifications system like the one on this page can help you be better prepared. You also need to ensure that you have the right insurance to cover you for every eventuality.
Scandals
Many businesses have their reputations tarnished by scandal. With the prevalence of social media, this type of negative publicity can spread quickly and before you know it, you are rapidly losing clients. Being careful about how you run your business should help reduce the risk of any scandals affecting your company. Still, it can’t hurt to have the number of a good PR company on file!
Fraud
If you are just starting out in business, there will likely be a number of fraudsters out there looking to part you with your hard earned cash. As your firm gets bigger, you should find that it is less susceptible to being defrauded. However, you’re still in danger of employees carrying out their own internal forms of fraud. These tend to be more minor, but it’s still a risk that is worth considering.
Lawsuits
Other businesses may try to sue you for plagiarism or stealing their intellectual property. It could be as simple as using an image that you didn’t have the rights for or making a false claim against a competitor. Verify all your work to make sure you reduce the risk of this happening. Another kind of lawsuit that you may be subject to is a personal injury one that takes place in the workplace. Make sure your business undergoes a regular health and safety risk assessment to help prevent this from happening.
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