The 3 Biggest Threats to Small and Medium-Sized Businesses

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Even if you have been on the job for years or have enjoyed success for some time, this experience doesn't always mean you are fully prepared for the future. 

Get the most out of your team. Mitigate your risks. Know which investments to make. Utilize this information below to further ensure nothing can cripple your business.

No matter your industry, this list can help you. Pay attention to these three threats that have often become problems for businesses from every industry. They far too often destroy small and medium-sized businesses. Your company needs to prevent these types of issues at your place of work.

1. Bad Financial Planning

Before making large financial decisions, sit down with your financial adviser as soon as possible to plan and strategize. At least once a quarter, get them to perform a thorough audit of your entire economic picture. Make sure your company is firing on all cylinders and not hemorrhaging unnecessary money. Cut costs where you can and limit your expenses. Know which investments are the right choices given your current market position as well as future outlooks. Determine your immediate and long-term options to bring more money into your company's coffers.

Limit travel as much as possible. When you or other team members do have to hit the road, you must try to prepare in advance. Set tough guidelines and enforce them. Don't give too much wiggle room for your off-site workers when it comes to travel budgets.

Avoid the pitfalls of unexpected expenditures and poor planning on your end. Have hard numbers as to what you can or cannot do. Stick to those facts. Don't venture into unplanned for expenses, unless it's an emergency. All decisions need to be approved in advance by your financial planner as much as possible. Your CFO, comptroller, or possibly even you, must have an iron fist when it comes to controlling costs and following your strategic plans. Don't be a victim of bad financial planning.

2. Data Breaches

Criminals from around the world can hack your information technology (IT) and destroy your business. They can steal your personal data, and they can take your clients' information, too. Every day, people like you are at risk of everything you've worked for being jeopardized. Ensure that you have strong IT protections in place to thwart data breaches using a secured software stack that includes secured databases, virtual data rooms, and safe networking that keep information secure yet highly available to those who need it. Employees should be kept up to date on security threats and asked to maintain industry standards for passwords and data.

Cybersecurity is perhaps the most common and costly threat to businesses of all sizes. Even if you have seasoned pros on your team, one of them could hack your network. People on your team also could leak sensitive information without ever knowing they did that. Fortunately, there are protections you can put into place without spending too much money. Cybersecurity and data integrity is an investment on your end that undoubtedly could pay off.

Entrust outside IT consultants to help oversee your business's network. Even if you have a tech team at your company, the additional oversight could pay off by providing on site safety training.

3. Poor Customer Service

Small and medium-sized business employees have a lot more face-time with customers, and your team does, too. Don't ever think customer service isn't a priority. In fact, your future depends on it.

Your business might have years, even generations, of success under its belt. When was the last time, though, you checked out your customer service standards? Do you have a method in place to check them? Get on this today.

Facilitate surveys to your customers through email or social media. Of course, keep your results away from the public, unless there are no exposed weaknesses. Do the same with your team. Require them to complete a survey, too, focused on customer service. Search for common occurrences. Make the necessary changes. Online you can easily find templates and questions.

Resilient Business

The success of your business relies on making informed decisions that fulfill your needs and goals over long periods of time. As you should know by now, make sure all those in leadership positions understand any common actions and keep a level-head when things go wrong.

The aforementioned threats to small and medium-sized businesses could always develop at your company. Make sure your business is ahead of the curve and minimize your exposure.