While we do what we can to avoid catastrophe, the truth of the matter that in the business world nothing is certain. What that means is that even the most stable and prosperous of business can sink without a trace. Of course, there are steps you can take to minimize the possibility of such a disaster sinking your business. A topic you can read more about below.
Money troubles
A problem that can sink even the most buoyant of businesses is money trouble. An issue that in a competitive market can be ever-present. After all, for small business with narrow margins, it only takes a few customers dragging their feet when paying invoices, and they can find themselves f in a position where they do not have not capital to buy resources, stock or develop new products to keep their company relevant.
Luckily, there are steps you can take to minimize any money issues that could lead to disaster. The first is always to have a line of credit pre-arranged with your leading provider, in case of emergencies. Secondly, if your clients aren’t forthcoming with the payments, they owe you may wish to consider factoring their invoices to free up the cash.
Lastly, don’t forget that even in the direst of situations there are steps you can take to minimize the impact of financial issues including declaring bankruptcy. Of course, to do this successfully, you will need to get an attorney that specializes in the particular area of law. In fact, it is by this you can significantly increase your chances of filing a successful case, and so avoid the perils of financial disaster.
Power cuts
Do you know how much of your business runs on electricity? I’m talking about the computers, internet, security measures, lights, and even heating and air conditioning. What do you think would happen if the power went off?
Things would grind to a halt, and if for some reason power couldn’t be fixed for a day or two your business could be facing a serious issue, with a reduction in productivity and a decline in profit.
Something that could ruin your company if they are in an already fragile position, to begin with. To that end it’s crucial that you have a contingency plan in place should a power cut areas such as backup generators unless you wish your business to sink without a trace.
PR problems
Being in business is sometimes like being in a massive popularity contest where the ultimate prize if profit and success. What this means is that if your public doesn’t like you or your choices you are effectively punching holes in the boat that is your business, and eventually you will run into some serious trouble.
Of course, that is why PR is so important when it comes to avoiding possible business disasters, but it shouldn’t just be used reactivity to deal with crises as they occur. In fact, the most stable of businesses use positive PR to actively boost their company’s profile by being associated with community and social responsibility projects, sponsorship of charities, and even by advertising they eco-friendliness. Something that can help you actually build positive favor that can act as a life raft, if disaster does strike.
