There are so many areas of business that can take a negative turn. Panicking and making a quick decision is rarely the answer as this can inhibit company growth for months or even years. The best tactic is to think out a decision and list out the possibilities for a course of action. Not all problems are preventable although it is imperative to take appropriate measures so the disaster doesn’t occur again. Overcoming these things in a cost-efficient manner can be tough but it is possible. Below are common business disasters and how to overcome them without breaking the bank.
A data leak can happen if WatchGuard Security are not invested in. The focus of a company that has information online of customers or employees should be to keep this information safe. The company needs to do training periodically on the best practices to keep information safe. This could include not using company devices for personal reasons or to change passwords on a regular basis. Some of the largest brands in the world have been hacked including Target and Home Depot. This has led to them having to pay out millions in compensation to those that had their information stolen.
Former Employee Stealing Clients
A former employee stealing clients happens more in business than anyone would like to admit. Employees that landed big deals could see that as an opportunity to go into business for themselves. The appropriate employment paperwork can eliminate this with certain noncompete clauses. References from previous roles will often tell a company calling if someone has stolen clients in the past. The importance of the paperwork cannot be understated and the signing of an NDA will ensure company information is legally protected.
Former Employee Suing for Wrongful Termination
Even the most laid back of former employees might not believe that they should have been terminated. This could be due to behavior or simple failure to produce at the right levels. There should be paperwork done throughout the process which will include any disciplinary action or verbal/written warnings. Companies get into trouble when they do not document everything as the former employee can simply deny a warning was ever given. The employee signing the documents and receiving an email to clearly state what was discussed in a meeting needs to be required.
Huge Clients Aren’t Renewing Their Contract
A huge client or multiple clients refusing to renew their contracts can happen from time to time. This could be due to the company taking a different direction on a project or due to the quality of work not being up to par. Adding clients monthly of all sizes will help diversify the business enough to endure a loss of a huge client. The last thing any company wants is their future to sit on the shoulders of a single client. The right CRM can help with renewals and will automatically remind employees to discuss next steps of a business relationship with a clie3nt.
Managing these disasters is going to be tough but with a detailed plan it can be done. Take the time to create disaster management plans in the areas above and try to prevent any of the disasters mentioned from happening.