Note: Recently, StaffScapes had the pleasure of presenting at a local Chamber of Commerce luncheon. During this speech, we focused on points to help the small business owner grow and prosper in 2012. We have taken this speech and created a series of blogs we will post based on each of the 4 P’s we feel are critical to your business.
So far, we have discussed the People within your company and the key methods for working with your numbers for business success. In this third part of a four part series, we are going to discuss managing your risk and liabilities through protection. If you missed either of the first two posts, please visit our StaffScapes blog or view specific posts “People” and “Profit”.
The Protection Component
As a business owner, you are keenly aware that there are risks associated with doing business. These risks can present themselves in many different ways. Obvious risks include workers’ compensation injuries, theft or gross misconduct. Lesser thought of risks include cybercrimes, errors and omissions and identity theft. Risk surrounds you and your employees daily. So how do you manage the risk and reduce your liability?
Begin with reviewing your potential risks and liabilities. Look for and expose problem areas, visual dangers and procedure or communication breakdowns. During this process, it is often helpful and prudent to work with one of your trusted advisors or an outside consultant. This person can often help you identify risks that many times are missed by individuals closely involved such as the business owner.
After identifying your risks and liabilities, you need to determine the costs/benefits associated with each risk and how you can effectively reduce or manage the risk. Consult with your insurance agent to discuss programs and policies that can be implemented or underwritten to reduce your risk should something occur. Review all of your internal operations for opportunities for improvement in procedures and policies. If you need further assistance, partnering with a risk management specialist may be a good idea.
On an annual basis, we suggest that you once again review all of your liabilities. Meet with your insurance agent to review changes that have occurred in your business and/or personal life as you may need more coverage. In some circumstances, this review may even lower your premiums. It may also be a good idea for you to bid out services and coverage at this time as well. Sometimes, competitive offers can provide you with new services, better programs and cheaper rates just by asking. An additional source that may be worth talking with are your associations. Are you a member of a trade association for your industry? If so, they often provide discounted programs and services for their members that may cost you less than contracting with someone in the open market.
Taking these steps will help you to reduce the opportunity for risk. Owning a business comes with challenges and certain risks that you cannot avoid. But by mitigating the risk potential, you can operate a successful small business and enjoy the fruits of your labor.
Our next and final post will focus on partnering to help your business thrive.
Understanding the business of employment is tricky and StaffScapes can help you improve the “Protection” component of your business. By helping you to stay compliant and reducing non-revenue generating activities we can help you grow and prosper and keep you focused on the reason why you got into business. We will help you with payroll and tax compliance, claims mitigation, and other human resource tasks to give you the time to concentrate on your business.