There’s no denying the need for protection for the business. A business is a storehouse of value. It could be material or intellectual in nature, but it is often critical for business functioning.
As the world creates more value through ever-rising entrepreneurship, unfortunately, crime is on the rise too. This has made it important to protect businesses in a variety of ways.
But it is not just a crime that a business has to protect against. There could be natural calamities or regulatory changes affecting business. It is essential to protect against these too. Because the downside of not doing so can be significant.
Consequences of security gaps
The most obvious loss from any risk to business is the loss of money. If there is a crime against the business, chances are that the motivation will be money.
Even if it is not a direct stealing of assets from a business, it can be the theft of say, intellectual property. Moreover, damage control has further costs.
Besides this, there are other impacts of not protecting the business. It can affect the business by disrupting usual trading.
No customer likes a business that suddenly finds itself unable to function. This in turn can impact reputation.
If required safety procedures were not undertaken in the first place, there might even be legal fines for a business.
How to protect your business
This is not to send any entrepreneur into a tailspin of worries. After all, there are a lot of things that can go wrong in business.
You might worry about which of these you should focus on. The five basic ones are covered here, which can hold any business in good stead.
Secure the premises
This is a no-brainer but is so critical that it bears mentioning anyway. Instead of depending on traditional locks, a business could consider advanced security systems with password protected access and security alarms.
Network security solutions
Much like the actual property needs protecting, so does the network. This is especially so as cybercrime is an increasing challenge in a fast-digitalizing world. Good network security can protect from a rising number of cybercrimes like phishing and identify fraud, as instances.
A small business in particular may feel no need for insurance cover, but it is always good to have it in some form. Besides securing against crime, such covers can provide against litigation expenses.
Or it can even provide protection from unforeseen events like natural calamities. Of course, there are different kinds of insurance covers available, so choose the one that best fits your requirements.
Intellectual Property protection
For businesses based on unique formulations or branding, intellectual property protection is a must. This makes it less likely to be copied by competitors which can drive you out of business. Having a good lawyer in place who can guide you through the process is vital.
Financial checks and balances
Finally, it is important to have the right financial processes in place to ensure that there are not slip-ups or actual misappropriation of funds.
If for instance, a business is unable to maintain its records, it might end up paying more or less tax than what it is expected. Or there could be a siphoning off of money by say, someone at the cash counter or a missing inventory. It’s imperative that merchant payment fraud detection is in place to prevent disaster before it strikes.
Having proper financial systems in place can ensure that the possibility for these activities occurring is minimized. There are plenty of financial tools available to do this, like Security checks that are aimed at fraud prevention.
Business can create great value, but in order to ensure that it is sustained, it needs to be protected. The downside of not doing so can be big. Not only can it result in financial losses, but reputation can also suffer too. But the key learning here is that there are multiple ways to protect a business, from insurance to proper financial systems. These can go a long way in ensuring the success of a business.