Running a small business can be very stressful as small problems that would not impact a large company can be devastating to a startup/small business. Preventing problems needs to be in mind of management of a small business as there are only so many times the business can be reactive. There are some scenarios where if the problem is not addressed that it will only worsen over time. A proactive assessment of risks needs to be done then the risks mitigated so business can run as usual. The following are disasters along with recovery strategies that should be used by a small business.
Star Employee Arrested For Drugs/DUI/Other Substance Abuse Related Charge
There could be a star salesperson that could have a hidden substance abuse problem. This problem could have been noticed but companies are usually very blind to these things if the employee keep shattering production records. An employee arrested for a DUI or drug possession need great representation like Anchorage criminal defense lawyer, Scott Dattan. The employee does not have to lose their job but it needs to be a requirement that they seek help. Substance abuse can impact nearly anyone if they fall into the wrong habits or crowd so keep an eye out for this.
Losing A Huge Client
Losing a huge client can cripple a small business so contracts need to lock clients in long-term. The sales team also need to consistently bring in more clients than the company loses. If this does not happen clients will continue to leave which will dry up cash flow and could eventually close the doors of the business. The sales process needs to be optimized as well as data gathered from each pitch, email sent, and keep a close track of where a prospect is in the sales cycle. Discounts to current clients to extend contracts can show appreciation as well as guarantee revenue for a certain period of time.
Employee That Was Terminated Sues
Employees that are terminated might not understand that they cannot harass people or that their production had been below acceptable levels for months. These employees want to be heard and at times the only tactic that can help them do this is by filing a lawsuit. For this reason, it is important for all companies to follow proper procedures by having the employee sign documents about writeups or infractions. Following up with an email can leave the trail of proof that is needed to win any case.
Marketing/Advertising Is Showing Nearly No ROI
Marketing and advertising showing no ROI can be a huge detriment to a company of any size. There is a chance that the in-house marketing team is not producing so it is time to clean house so you can hire freelancers. There are plenty of digital marketers and advertising professionals that have a proven track of success in various areas. Finding these reliable freelancers not only can generate results but also can save quite a bit of money when compared to employing a full marketing department.
Mitigate risks and be proactive about solving issues that have arisen. Do not leave anything up to chance that can be controlled as this will help ensure success.