Understanding the role of small business requires a clear idea of its place in the international economy and what are its distinctive features.
The formation and development of any market implies the free and equal coexistence and development of various firms and sectors. Considering the private sector of the economy, we can name three groups of enterprises: large, medium and small.
The owners of these enterprises are united by a common corporate interest - the preservation, development and protection of private property.
Small businesses represent the small owners who determine the socio-economic and partly political level of development of the country. By their standard of living and social status, they belong to the majority of the population.
This sector forms the most extensive network of entrepreneurs operating mainly in local markets and directly related to the mass consumer of goods and services. Their technological, production and managerial flexibility allows them to sensitively and timely respond to changing market conditions.
#1
Protect your small business from potential lawsuits. They can entail significant material costs, even if you are confident that you will win the case. You’ll still have to pay for the services of a lawyer representing you in court and spend a lot of time defending your company.
Avoid business contacts with people with a bad reputation and do not take part in dubious enterprises. Be sure to use liability insurance and think about additional insurance.
#2
Assess your ability to withstand disasters. Sudden disasters, such as a fire or a hurricane, can ruin your business, leaving you without a profit and recovery plan.
Develop a crisis plan. If a disaster does happen, you and your employees will know exactly what to do.
#3
Keep track of cash and income. Keep your bills, as well as other accounting documents in one place so that they are not stolen and you don’t lose your money.
Be vigilant in hiring employees. Check personal data, keep track of all employees and consultants, especially those who have access to company finances. Audit the finances of your business at least every quarter.
#4
Collaborate with a qualified lawyer and financial advisers. Small businesses have access to many tax breaks. Make sure you know and use them all.
#5
Understand the essence of cyber crimes and the vulnerability of your company to them. Hackers often choose small businesses as targets for their attacks, as small companies have much lower levels of computer security than large corporations.
#6
Protect all your data and intellectual property. Use antiviruses and set up a firewall for your network.
#7
Be responsible while using the media.
Use social media and the Internet to promote your product or service and reach your clients / customers.
Do not show violent reactions to negative comments. Removing any messages that cast a shadow on your business can harm your small business even more. You should be open to criticism.
Stay on top of all the potential threats your small business might face. Regularly read thematic publications. Talk with representatives of the business community about what they are doing to maintain security, and engage your subordinates and partners to help you protect your business!
