Date: 22nd July 2019
It is hard enough to make a decent living from owning and running an SME, without having to deal with theft, fraud, pilferage or other forms of illegal loss.
So this week I thought I would highlight some ways to reduce the risk of your business becoming the victim of illegal activities
The statistics on Shrinkage in SMS show a considerable illegal activity – all of it coming off your bottom line and going to someone else. You have worked hard to make a profit, so make sure you take every opportunity to ensure that profit stays with you.
Here are some basic simple steps that you can take to prevent illegal activity putting a dent in your profits:
- Hire Carefully – make sure you find capable and trustworthy staff. Easier said than done. Make sure you put a lot of effort into recruiting and retaining staff (firstname.lastname@example.org). A little bit extra at the front-end could pay dividends down the track.
- Crack down on theft. www.police.govt.nz have lots of good advice that is very pertinent to small businesses.
- Rethink the way to present your company, assets, layout, and cash register if you are a retailer or in hospitality. Insurance is the key.
- Be proactive about fraud prevention. This includes electronic scamming. Make sure you do everything possible to reduce the risk of you being scammed. Contact your local bank for more details.
- Avoid costly administration errors. Let’s face it, human error is pretty much avoidable. There are companies out there that will charge you very little to take control of all your admin and book keeping needs. The best one I have come across is email@example.com.
- Integrating a Point Of Sale system will help make life easier for everyone by catching inventory errors and data inconsistencies at an early stage.
A virtually shrink free future for your business could be achievable provided that you hire carefully and use the right tools available to you.
Get in touch with me to sit down and discuss your business over a coffee.
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P.S. This article is part of my Secrets of Success series, aimed at helping business owners and entrepreneurs with some of the key components of business success. The insights I wish I’d had at the start of my business career. I hope that by passing on these little gems of knowledge I can give you some support and help you along the pathway to growth and prosperity.
Posted in: Secrets of Success Blog