Every small business faces multiple risks and threats. The best way to address this reality is to perform a risk assessment and take steps to manage that risk. The first thing you need to know is the kinds of common risks small businesses can face.
A Miami, Florida business attorney can help you prepare for potential risks and deal with the situation after adverse events happen.
Security Risks Can Include Cyber-Security Threats and Physical Safety
Every company uses computers and the Internet to perform at least a few of its essential functions. The payroll service your company uses, your accounting software, your customer base, and your website could get hacked and be the victim of data breaches. If your customers cannot trust the safety of buying your goods or services because of these security risks, your business could fail.
Physical safety is another security risk. If you have a business location that customers visit, you need to make sure that they can get to your office or store without getting injured or assaulted. You will want to find out your local crime statistics and take appropriate measures.
Protecting Yourself from the Risk of Financial Loss
One of the best ways to lose your life savings is to open a business. A large portion of new businesses fail because they are undercapitalized. If you do not have the cash flow to keep your doors open, your business cannot survive.
A business attorney can help you explore financing options to create a stable foundation for your company. Also, a lawyer can help you set up a business structure that minimizes the risk to your personal assets.
Safeguarding Your Business Reputation
Social media is a two-edged sword for companies. The public forum of social media could drive customers to your store if you have good reviews, but a competitor or a disgruntled client could damage your reputation and cost you future business.
Potential customers look for information from the public to help them decide which companies will get their business. From restaurants to clothing stores to home renovation, you need a positive online presence. You will want to develop a social media policy for how your employees interact with customers online and consider working with a consultant who specializes in online reputation management.
Learning How to Pivot When Things Change
The most brilliant business plan in the world could become obsolete if you do not adapt to marketplace changes. Advances in technology, changes in legislation, and emerging competition are just a few of the potential risks that could require new strategies.
One Lawsuit Away from Bankruptcy
If someone gets hurt in your shop or says that they suffered harm because of your product, you will likely find yourself in court. You want to make sure that you have sufficient insurance to cover potential liability risks. It is difficult to pay insurance premiums when first starting out with your business, but failing to do so could put your personal assets and the future of your business at risk.
Business Interruption – It’s Not Just for Pandemics
If recent events have taught us anything, it is that life as we know it can come to a screeching halt for a very long time without notice. Another type of insurance all small businesses should consider is business interruption coverage.
These disruptions can happen because of pandemics, as we have seen, but there can be other causes as well. Here in Florida, common natural disasters like hurricanes can happen every year. Also, supply chain disruptions can make it difficult, if not impossible, for you to get your work done.
You might want to talk with a Miami, FL business attorney about ways to plan for and prevent common risks that could harm your small business. Contact us today to learn more.