Every business owner is overwhelmed with responsibilities – there’s a ton of stuff to look out for and even more ways to make their worst nightmares come true. A lot can go wrong as a result of a tiny lapse in judgment and being aware of some of the worst scenarios is a good way to prevent them from happening.
Cash Flow Issues
So, what is a cash flow? To put it simply, it’s the movement of money into and out of a business, which comes either from payments, customers, or loans. There’s a ton of potential issues that may occur here, even if a business owner successfully handles overdrafts and bank loans. For example, interest rates can stir the pot quite a bit and invoice financing is an excellent method to free up the cash flow when the budget is tight. Essentially, a third party buys your unpaid invoices (for a fee, of course) and then gives you a percentage of the amount of invoice up front, collecting the debt that was owned to you and giving you back the remaining balance. This is an excellent way to get out of a tight spot, but you may end up losing profit from your orders, which is the very backbone of your company.
Relying on a Single Client
Being dependent on a single client is quite a slippery slope – the things may be going well, even great at the moment, but bear in mind that the less clients you have, the bigger the chances are of losing everything in a single fell swoop. For example, that single important customer that seems to be doing well fantastically, judging by the amount of cash they’re paying you, may be suffering from a bad business plan and may well be doomed for failure. On another hand, the client in question may slip out of your hands exactly because they are doing well – they may find a better deal with one of your competitors. Looking into your client’s business is not only difficult, but also causes bad blood, so the best way to make sure that the loss of a client doesn’t turn out crippling for your own company is maintaining a larger client base, just to be safe.
Not Being Popular on the Web
The key to a business’s success is getting its name out there, otherwise, you are in the risk of becoming yet another statistic. Proper marketing is crucial here. Although being present in the social media world is extremely important, having a website is a must; if you aren’t on Google, you don’t even exist! Having a properly designed website is crucial and so are user friendliness and ease of access – people won’t bother with slow or overly complicated webpages, this is just the reality we currently live in.
As a business owner, you are the one who vouches for your employees’ well-being; if you fail to come through here, rest assured things are going to get messy. Hiring a quality work injury lawyer goes without saying, otherwise, even if the cause of a potential injury is obviously your worker’s fault, you still might end up with a lawsuit on your hands; and you definitely do not want this!
A company is only as strong as its data at hand and, even though the cloud has brought upon a ton of good for many business, it has brought a lot of risk to the table. This is why properly securing your online presence is so important. Don’t refrain from investing more into a quality cloud service.
These are the biggest business owners’ nightmares which can be avoided with a little bit of planning and precaution. Think about your cloud safety, pay attention to all of your clients equally, advertise your business on the Internet and hire legal help for potential work-related injuries!