subject: Risk Management In Small Business [print this page] Legal risk management has always been important for individuals, businesses and non-profit organizations. What has changed is this. In the current economic climate, when having to pay out of pocket for an uncovered claim, legal defense costs or a settlement or judgment may mean the difference between survival or failure, what has always been important has now become necessary and imperative.
So what was it before all the academics began to develop the formulas, write books and companies were formed to develop software so that businesses and boards of directors could find their way to manage risk? The answer is a stretch of the imagination in the 21st century. It is elusive, loosing its context in philosophical approaches like modernism and the emergence of software and computational models.
Some of the such losses that small business suffered after occurrence of accident; are lost of goodwill to customers due to failure to deliver merchandises on time; lost of faith from employees for not providing a conducive working environment, and many more losses which do not have financial impact initially but gradually translate into financially losses.
We Google everything today; new people we meet, TV shows we watch, products we buy, celebrities we like/hate, even ourselves. The world is changing; it's becoming more transparent every day. If we want to stay in tune with the changes that are happening right before out eyes, we need to adapt ourselves, too. That means staying atop of your online reputation, among others.
Credits and Collections: Determine if you should accept credit cards, and other forms of payments, and learn the best methods for quickly and efficiently collecting debts. Find out how alternative payments, such as trading products and services, or factoring, can positively or negatively affect your business.
The journey of a small business owner is fraught with twists, turns, and obstacles. Many shy away from the risks and personal growth involved. You, however have stepped up to the plate, you have chosen to take on the challenge. On those days, when you feel like cashing it all in for direct deposit paychecks and paid holidays, let the experts encourage you to keep Eating those Frogs, Tackle your Papers, Focus on your Top Three, and Boost Your Energy!
The insurance component of your risk management efforts is probably the most desirable to address. There are some risks you simply have to assume for yourself, some risks you have to figure out how to minimize yourself, and some risks you have to learn how to eliminate yourself. Those constitute the major remedies after an initial assessment of risk.
As a business, you may be responsible to pay sales and use tax, your own self-employment (Social Security) and medicare tax, as well as payroll and other employment taxes. In many cases, you may need to file and pay taxes quarterly to avoid penalties from underpayment of Federal and other taxes. Check with an accountant for information on taxes.
Managers and owners of small businesses too often suffer in silence, even as the walls come tumbling down around them. Do yourself and your business a big favor and don't wait until the Huns are coming over the hill before you seek out help. With the hundreds of hucksters that always seem to be waiting in the wings to bilk business owners, I can appreciate the hesitance that often comes in finding someone to guide you through troubling times.
