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Starting a business in the UK is not easy but running one is also not a piece of cake. Here we discuss the 5 most common business threats in 2021.
No matter how stable your business is, there are always threats around that disrupt it.
You must be at your best every minute to identify all challenges before they can cause issues as a business owner or manager. It’s important for a business leader to be well-educated about cybersecurity and online threats particularly as most businesses nowadays have a website and operate remotely.
Problems will keep coming your way as long as your business is operating, and it will take only one fatal blow to close your company, especially when the customer or staff data is compromised.
The best you can do is understand all types of threats to your business and prepare yourself and your team to deal with them.
No matter whether your business is based in or outside of London, here is a list of possible threats that every businessman and businesswoman should be well prepared for.
1. Cyber Security Threats
The rise of the internet brought many new challenges for us. While there are many opportunities for us, there are also opportunities for hackers and scams. Even as a small business, you must build a strong defense to prevent such attacks. There was a time when hackers would only attack larger enterprises. However, even the personal data of individuals is more lucrative now, so as a small business you may be a target.
There are unlimited viruses such as ransomware on the internet. They might encrypt all your data and ask you for ransom. You will need the help of a professional service to investigate where and how ransomware originated so this doesn’t happen again. You can also hire their service to ensure there are currently no such vulnerabilities as well as in the future.
It is certainly recommended to have an IT professional at hand who can offer support where needed, especially when emergencies occur.
2. Fighting Against Monopolies
As soon as you get a footing in your industry and niche market, your competitors will start to notice you. There is the same number of customers, and a new business means they will have to do some of their business. If you get big, you could get all their sales.
Big companies that lead the industry are particularly more wary of their competitors. They will observe them and try to remain as competitive as possible to remain a leader in their industry. Especially for small businesses or start-ups, this means they must work extra hard or smart to establish themselves and this is also true for competitive cities like London where for example FinTech companies are thriving. When it comes to David versus Goliath it is possible that monopolies swallow their smaller competitors as we saw with Facebook purchasing Instagram.
3. Negative Customer Feedback
Most businesses underestimate the damage one angry or disappointed customer can do. You always try your best to keep all your customers happy and satisfied. No matter how difficult this might be, it’s your job to ensure their happiness or apologize afterward to encourage them to remain loyal to your business. Instead of focusing on getting better profits, you should prioritize customer satisfaction. This will get you more business and build a good brand reputation.
This will also help you reduce negative feedback and ratings. The internet has given a voice to everyone as customers can post videos and photos of their experiences. People do research on the internet before they buy anything from anyone, and recent studies clearly show that a brand’s values influence UK buyers. If you have even one feedback saying you are an unethical business, you will have to pay the price.
4. Employees Compromising Data
Most businesses are started by people who were once employees themselves. Often, they start a new business in the same niche they worked in previously. They become a competitor of the company where they worked previously and may have connections that can be useful for their own business.
It takes time to gather data and build resources. Instead of working and investing money for a long time, many people gather data and resources from their previous employers to get a head start. While you can’t and shouldn’t stop any employee from leaving and starting a business of their own, you must make sure no one can access your resources and data in unlawful ways.
5. Demotivating Employees
You can’t keep replacing employees if you want your business to grow. Make sure you hire the best talent in the industry and keep them happy and motivated as well as trained and skilled for successful company culture.
Just giving them enough money is not enough. You have to offer them employee benefits and keep doing things that would keep them motivated. This way, they will work for the growth of the company instead of purely for their salary.
No business can avoid external or even internal threats but be prepared and equipped to deal with them is key to solving any arising problems before they do significant damage. Any business should therefore have effective crisis management procedures and processes in place to react as fast and adequately as possible when issues are encountered.
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