Covering Your Bases: Protecting Your Small Business From These 3 Risks

Starting a small business is the dream of many professionals but these people need to understand how to mitigate risks to ensure company success going forward. There are far too many founders of businesses that simply didn’t get an insurance or license which can cripple the business. A proactive approach at solving problems before they compound is usually the best policy. Running your business by the book is also important as letting mistakes go in things like accounting or terminating someone can lead to legal issues in the future. The following are tips to help a small business owner protect their business using these 3 tips.

Make Sure To Follow A Process To Terminate An Employee That Has A Paper Trail

There are going to be those people that even after plenty of write ups and emails will argue that they have done nothing wrong. The worst of these people will say that they were discriminated against leading to them being fired. A paper trail with signatures of the employee will easily get a case thrown out of court quickly. With this being said, you need to take all accusations of harassment seriously as well. Small companies have friends and family members working there but their bad behavior shouldn’t be tolerated risking the entire business.

Safety Trainings Should Be Done Regularly

Safety trainings should be done especially at riskier jobs as the last thing anyone wants is a valued employee hurt on the job. These trainings might seem mundane but could prevent an accident by reminding staff of specific risks a certain job might possess. You do not want a McAllen injury law firm or one in your local area to find out there has been a lack of training that resulted in a serious injury. Insurance is also paramount for this reason as a large settlement out of pocket can shut down even a large business. These insurance policies can also help cover employee wages while they are unable to work which is the right thing to do by caring for employees.

Keeping Vital Information Secure

There have been a number of hacks on companies of all sizes with some being politically motivated while others were to obtain vital information that is commonly used by identity thieves. The first step to keeping information secure is only giving access to people that need this information. This includes company accounts and keeping the passwords on a need to know basis only. Changing all passwords that a terminated or former employee had access to should be done the day the employee is let go. Angry old employees can hurt a business immensely if they have access to certain information so eliminate this completely by changing passwords regularly and after people leave the company. Default passwords on all company devices need to be changed as well. Sending a list of rules for company devices is also important like no connecting to public Wi-Fi as this is a hotspot for hacker victims.

As you can see you can protect your small business by being aware of the risks and acting. Take the time to do a risk assessment of your business ASAP.

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Melissa Thompson

Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of and writes about health, wellness, and business topics.