It does not matter what sort of business you run, whether it is a consultancy firm, a coffee shop, or a store that sells car parts, you need to make sure that you manage your finances effectively. This is something that all businesses have in common. If you look at the statistics regarding startup survival rates, you will soon find that they do not make pretty reading. One of the main reasons why startups fail is because they run out of money. Below, we are going to take a look at the business blunders that could end your business quicker than you can say ‘pound note’.
Assuming a data breach won’t happen to you – There is only one place to begin in this digital age, and that is with cyber security. This is something that a lot of business owners assume they do not need to be concerned with, especially new and small companies. This is a big mistake to make. A data breach could cost you thousands, if not millions. Not only will you have the fraud losses to contend with, but huge fines and you will need to pay compensation to everyone impacted. You need to recognise that all companies are targets, even the small ones. Hackers view these firms as an easy payday, so make sure this is not the case by investing in cyber security at your business.
Not taking out the required insurance – All businesses are required to have insurance in place so that they are protected in a number of different scenarios. If you do not take out insurance, you will find yourself on the wrong side of the law and with a huge compensation bill to fund.
Poor health and safety – Poor health and safety is something else that could end up costing your business thousands and thousands of pounds. Firstly, you need to make sure you have the correct temporary work protection in place so that workers are protected from anything that can hurt their health while they are working. You also need to make sure that you carry out regular risk assessments and put measures in place to deal with your findings.
Emotionally driven decisions – Last but not least, making finance-based decisions with your emotions rather than your head is never a good idea. A lot of people make terrible decisions when they are upset or angry. No matter what sort of decision this is, you should it off until you are in a better mood and you can think with greater clarity. This will ensure you can think more rationally and that all outside influences are eradicated.
So there you have it: some of the biggest blunders that can cost businesses thousands and thousands of pounds. A lto of the companies that have fallen into the traps that have been mentioned above have had to end their business prematurely because they were unable to come back from the dire financial situation they found themselves in.