A small business will often face a wide variety of obstacles they will need to overcome throughout its lifespan. Unfortunately, a problem can arise without warning, which is why an organization must stay updated on the various risks to their operations, finances, and reputation.
Ensure your growing brand is prepared for every hurdle by reading about the four biggest threats to small businesses.
One threat your company cannot afford to ignore is cybercrime. According to a recent report, an incredible 43% of cyberattacks will target small businesses. To gain access to a company’s data and finances, a cybercriminal could embark on one of the below attacks:
- Social attacks
- A misuse of authorized users
- Phishing scams
- Insider attacks
- Denial of Service (DoS) attacks
- Man in the Middle (MITM) attacks
To ensure your small business never falls vulnerable to a cyberattack, you should consult a reputable tech company to identify and implement the right security solution for your needs. For example, you could turn to outsourceIT for managed IT services to monitor your environment 24 hours per day, which will increase your security and support your operations.
2. Unexpected Employee Absences
Most small businesses will depend on a limited number of employees to power their operations. Unfortunately, if a member of staff is ill or fails to attend work, their absence could cost your company substantial money.
For example, if they are on a salary, you will pay them a check for performing no work. What’s more, their absence could impact your company’s productivity and revenue.
Every nickel and dime will matter when running a small business, which is why you must aim to minimize unexpected employee absences as much as possible.
For example, you could stop an employee from calling in sick by:
- Improving the company culture
- Encouraging team bonding
- Allowing employees to take scheduled personal days
- Providing job incentives
- Offering flexible hours
3. Unforeseen Costs
An unexpected bill can cripple a small business, as they will often run on small margins. To ensure you aren’t caught off guard, you must consider all potential costs and their payment dates.
For example, do you understand your company’s tax requirements? If the answer is no, you should outsource an accountant to organize your business’s finances. You must have a firm grasp of your company’s outgoings, revenue, and profit margin, even if you have an accountant in place, which will ensure you never face an unforeseen business expense.
4. Rival Brands
Rival brands will not only want to steal your customers, but they might attempt to poach your best employees. If a new or existing company is selling similar products or services, you must make it your mission to develop a better brand, offer value for money products, and create a company culture that will help your organization to retain its top talent. If you don’t, you shouldn’t be surprised if a customer abandons your brand or your experienced staff jump ship to a rival company.