In the beginning, nothing seems like it will turn sour. Nope, nothing at all. In fact, the horizon looks sunny and void of rain clouds. Then, the honeymoon period stops and the clouds gather. When they burst, the damage they can cause is severe. Indeed, the threats are often more damaging because the business didn’t see them coming in the first place. The key, then, is to watch the horizon and negate the threats when they do inevitably occur.
Here are four generic threats which every company has to face in their lifecycle.
Taxation
A wise person once said two things are certain in life: death and taxes. In business, taxes are more certain than anything else. In the industry, there is no representation without taxation. And, the authorities can get mad when a business doesn’t follow the rules. Even if the firm doesn’t get it wrong on purpose, there is a chance of a jail sentence. At the very least, they will impose a hefty fine that can cripple a new startup. A business with a team of accountants, however, can survive a tax inspection. Accountants have knowledge and experience that allows them to cut the tax bill and properly organise finances.
Expansion
The threats don’t always seem like a bad thing. Growing, for instance, is essential. The problem with expanding is when it is done poorly. Businesses that move too soon or don’t have the resources will fail. In the end, they will die as a result of their success. Any savvy business person can see that expanding on a whim isn’t a good idea. The secret is to analyse the business to ensure it’s the best possible decision. Is there an office space available at the right price? Will the customers continue to buy the products and services? Answering these questions is vital before pulling the trigger.
Lawsuits
Suits come in many shapes and sizes. The main ones are from rivals and competitors. In today’s industry, bigger firms use lawsuits to cripple smaller companies. They know they have the money and will come out on top even if they don’t win the suit. Employees also like to sue if they have an issue. In fact, employee lawsuits are at an astronomical rate in 2017. Whether they are frivolous or not, a business has to deal with them. The only way to do that is to hire a lawyer and follow their advice. A good attorney costs money, but they are cheaper than losing in court.
Information Technology
Companies have to be online is they want to make money. If they are offline, they lose money because the internet is the main resource of the industry today. People go online to do the bulk of their shopping, which is why IT plays a big part in success. IT services that can’t cope with the pressure will cost a firm a lot of money. The truth is that IT needs outsourcing.
Not only is outsourcing cheaper, but it also boosts standards.
