From securing a location to obtaining a business loan to hiring your first employees, you faced plenty of risks just getting your new small business off the ground. However, the risks don’t stop the moment you open your doors to customers. Being aware of the common risks small businesses face is critical for your ongoing success.
Business Interruption and Loss of Income
The COVID-19 pandemic taught us that business interruption can happen at any time with little warning. Some other major reasons you may need to temporarily close your business include severe weather, fire, or vandalism. More common reasons include not having enough employees for day-to-day functions, family emergencies, health issues, a slow season, or issues with supply chains.
Could you survive without an income for a week, a month, or longer? If the answer is no, business interruption insurance can provide you with peace of mind and protection from the unexpected risks small businesses face.
Any company that does business online faces the ever-increasing risk of hackers. The methods that cybercriminals use grow more sophisticated all the time, which requires IT departments to stay one step ahead of them. Considering the amount of personal information companies collect about their customers, a single security breach could turn into a public relations nightmare.
Dedicating time and resources to combatting cyber criminals from your first day of operation is a better prospect than having them gain access to confidential customer data later. Consider having an outside firm analyze your online risks and work with the company to devise the most effective plan for thwarting hackers.
Labor Shortage and Skill Gaps
The United States Chamber of Commerce reports that 50 million Americans quit their job in 2022 and 47.1 million did the same in 2021. Known as The Great Resignation by some economists, the mass quitting has left many small businesses with open positions that human resources departments have not been able to fill. The desire for more flexible working hours and conditions to accommodate a better work-life balance has been the greatest factor driving this trend.
According to the Chamber of Commerce, the small businesses that have struggled the most with finding employees are those that require daily in-person attendance and offer lower wages than other industries. Regardless of your industry, you may not know how to set competitive wages or find employees who already possess most of the skills your company needs. A simple solution to this dilemma is outsourcing some or all human resources functions.
Supply Chain Issues
Many companies have struggled with an uncertain supply chain since the pandemic. If your small business sells merchandise to customers, having more than one source to obtain your goods is ideal. You also want to monitor your current supply chains to determine common issues and understand how the supplier deals with them.
Keeping Up with Payroll, Benefits, and Human Resources Tasks
You may be able to juggle multiple responsibilities as a small business owner, but you still have only a limited number of hours in the day to complete them. At the same time, you need to pay your employees on time, offer them competitive insurance benefits, hire new workers, and manage onboarding paperwork.
Compass HCM in Charleston, South Carolina offers each of these services on an outsourced basis. You choose and pay for only what you need and are free to request additional services as your business grows. By outsourcing these tasks to us, you have more time to focus on growing your company and the assurance of knowing that experienced professionals are on the job.
Our company serves small business owners in Charleston, Hilton Head, Beaufort, Bluffton, and the surrounding communities. We would love to chat with you to learn more about your small business and how we can help by taking over some administrative tasks.