Loss prevention is a huge issue that most small businesses ignore until it is too late. While some losses can’t be avoided, others occur due to a lack of proper management techniques. Below are just three things that a business can do to reduce its losses and gain more control of its financial future.
Eyes on the Door
Perhaps the best way a small business can stop basic losses is to keep an eye on the door. Keeping someone at or near the points of entry does quite a bit to deter theft without necessarily discouraging paying customers. For a sole proprietor, this may mean placing a register near the front door. For those with multiple employees, it may mean making sure that someone is always present on the floor during business hours. Many crimes are committed due to opportunity – take that away, and your losses will shrink.
Dealing with Legal Loss
Legal costs can be a huge source of losses for a small business. When a customer trips and falls or an employee is injured, it is the business owner who has to pay. It is important that every small business owner has both a solid insurance policy in place and that he or she has a trustworthy lawyer available. Working with a good attorney is the best way to make sure that frivolous lawsuits won’t occur and that any losses are minimized. Legal issues are an important part of loss prevention that simply cannot be ignored. On the other side of things, a small business can be easily sunk by internal legal problems. For example, if an accountant goes rogue, it’s vital to find a tax fraud lawyer that can help defend your company against the actions of an individual.
Good Inventory Systems
One problem with small businesses is that things tend to mysteriously walk away. A good inventory management system, however, can stop this from happening. Knowing what you have on hand is not just a good way to make sure you aren’t short, but a good way to make sure that you don’t over-order. Inventory control can also help business owners to pinpoint losses quickly, hopefully getting to the root of a problem before too much damage is done. The more knowledge you have of your inventory, the more you control you’ll have over your losses.
It’s possible for a small business to control its losses, but only if it takes the right steps. Make sure to control the business’ physical space, to monitor inventory levels, and to work with professionals to ensure that any losses are minimized. Loss is inevitable, but it’s always possible to reduce losses to a controllable level.
