We are currently in some uncertain financial times – we have large banks failing in the USA, and we have ongoing inflationary pressures here in Australia. However, what does this mean for the average business owner trying to manage their business at a day-to-day level? What should they be watching out for? Here are some suggestions to help business owners future-proof their business:
- Cash Flows: When was the cash flow plan last reviewed? Is there a cash flow plan at all?
- Have a solid business plan: A well-constructed business plan can help in identifying potential risks and plan for contingencies. It should include a risk assessment that identifies potential threats and strategies for mitigating those risks.
- Protection of intellectual property: Registering trademarks, patents, and copyrights can help protect the company’s intellectual property from infringement by competitors. Additionally, be cautious about sharing proprietary information with employees, contractors, or other third parties.
- Secure your physical assets: This may include installing security systems, using strong locks, and ensuring that only authorised personnel have access to sensitive areas. Regularly backing up data and storing it securely is also important.
- Implement employment practices that protect the business: This includes conducting background checks on potential employees, implementing policies for protecting confidential information, and having clear guidelines for terminating employees who violate company policies.
- Purchase appropriate insurance: Depending on the business type, location, and industry, there may be a need for different types of insurance to protect the business from various risks. This can include liability insurance, property insurance, and workers’ compensation insurance.
- Stay up-to-date with regulations: Depending on the industry, there may be specific regulations required for the business owner to comply with to protect the business from legal and financial risks. Staying informed and compliant with these regulations can help prevent legal issues.
- Have a crisis management plan: In the event of an unexpected crisis, having a plan in place can help minimise damage to the business. This can include having a communication plan, backup systems, and a contingency plan for continuing operations.