Anyone who has experience in running a business should already know this: it’s rarely easy. But there’s a difference between dealing with the day-to-day challenges that every company is going to face and fighting fires that threaten to do serious, if not irreparable, damage to the business.
One way to invite disaster is to fail to prepare for it at all. There are always options, whether it’s dealing with troublesome employees, the risk of the business closing its doors, or failing to catch any attention from the market at all.
When your employees are more hassle than help
Any good-hearted business person doesn’t want to think that employees are a great source of risk. However, the truth is that they can be some of the greatest if you don’t fully take your responsibility for them seriously. The biggest source of claims against employers by employees? Health and safety.
A thorough health and safety police to protect your team, informed by risk assessments and frequent conversations with the team on the matter, can mitigate a lot of the risk. But you can’t forget the HR side of it, either. Hiring HR specialists can help you start some very healthy habits in the business, such as having specific procedures for dealing with harassment, complaints, discipline, and termination.
The most important habit of them all is documenting every single case and every measure you put into place to help correct employees’ behaviour. Otherwise, a wrongful termination suit is always around the corner.
When you’re at risk of closing down
Lawsuits from your employees are just one example of why you might start suffering cash flow problems. When those problems build up, however, you might have trouble paying back debts to services your business relies on. When that happens, the business is at serious risk of closing down.
But it’s not all lost. Getting advice from teams like insolvency lawyers can help you see some of the measures you can take to protect the business. Measures such as reaching informal and formal agreements with your creditors, entering into a voluntary arrangement or putting the company into administration.
There are a lot of ways to reach a compromise to prevent the company from disappearing completely.
When your market just isn’t responding
Cash flow problems are a symptom and insolvency is a potential effect. But you should also think about the root causes of a company in trouble, too. One of the worst is when your company just doesn’t connect with the customer base.
When you launch a new product or service and the market doesn’t pick it up, despite a real demand for it, you need to think about why. For instance, you should never give up on the idea of rebranding and relaunching when a poorly delivered message is getting in the way of the product or the business’s success.
The above tips are only some of the protections you need to put in place. Even when you think you’ve plugged all existing holes, you can be sure that some more are going to pop up just a few years or months down the line. Always be on the lookout for risk and always be preparing strategies to deal with them.