Businesses these days face a lot of threats. This includes threats from stiff competition in competitive markets. It includes the threat of something going wrong with your product and harming your customer. It includes threats posed by hackers and cyber criminals. Even the prospect of rioters attacking your store during a protest has been a real threat for many years. Overall, you need to take steps to protect your business. Below are four measures you can take.
Diversify Your Revenue Streams
If your company is wholly dependent on a single source of revenue, your business may come to a sudden halt when that revenue dries up one day due to circumstances out of your control. One way to hedge against this risk is to diversify your business offerings. Much like diversifying a portfolio, relying on multiple sources of income from different wings of your company can help shield the entire company from defaulting if one division fails.
Keep a Close Eye on Bookkeeping and Accounts
Some of the biggest threats to a business’s profitability are internal. It’s not really a question of if employees will ever try to steal from you. It’s more of a matter of stopping that theft from becoming too significant. Hire an accountant you trust to manage your books. Also have strong knowledge yourself of exactly how all your dollars are being spent and the status of all your assets. Not doing so will likely lead to your business being defrauded.
Purchase Commercial Insurance
To protect your company from a host of different threats, you need commercial insurance. If your assets get ruined by a natural disaster, having such insurance coverage can be the key to surviving as a business. You also need to keep in mind that lawsuits are a very real threat for nearly every company. Forbes reported that 90 percent of businesses are involved in a lawsuit at any given point. Commercial liability coverage from places like Zuma Insurance is a must.
Take Advantage of the Tax Code
Take advantage of the tax code and try to claim as many write-offs as you legally can. There is nothing wrong with doing so. Many parts of the tax code were designed to help businesses, and you shouldn’t feel ashamed of using them to lower your tax burden.
Overall, businesses face a lot of threats every single day. If you don’t take precautions, these threats could manifest themselves and wreak financial havoc on your business. Do what you can to protect your company and its finances.