Crime is something that many businesses have to deal with. In fact, Associated Security found that more than half of small to medium size businesses in the UK are targeted by crime at some point in their tenure. As such, it’s important to know the effects that crime can have on your business, so you’re ready to handle it.
Unfortunately, if you aren’t careful, crime can affect your long-term growth. However, technically, any problem could cause your business to stall if it isn’t handled effectively. If you learn to recognize and react to different crimes in the correct manner, you can try to head off any long-term effects.
To do this, though, you need to know what to expect. These are some of the most common types of crime that small businesses face that you’ll want to keep an eye out for and the potential results of these activities.
This is one of the biggest crime concerns for businesses and it can be a threat to small businesses in particular. This is because when an item is stolen from a company, it needs to be replaced. So, the company has to eat the loss of not only the profit for that piece but the sale amount that would cover its purchase and then buy a replacement.
While theft like this is a problem for all companies, corporations aren’t going to feel as much pain over minor theft. On the other hand, a smaller business is dealing with fewer funds and will quickly notice the absence of product and profit.
In today’s world, most people and businesses keep crucial information digitally rather than physically. This adds a lot of convenience to your life but it also opens you up to some risk. If you don’t take any security measures, you could easily find yourself facing a security breach.
By comparison, you wouldn’t leave your office at the end of the night only to leave the door unlocked with all of your sensitive files out on your desk. Instead, you’d take the time to lock the door and place those files in a secure location.
Cyber security is the same concept. The only difference is that instead of a locked door, you’re going to want to implement strong passwords and use anti-virus software. This will help you avoid cybercrime such as information theft, ransom, fraud, or corrupted files. Make sure you update these measures frequently to ensure they stay secure.
Finally, it isn’t just about the direct loss to your company that crime can bring about. It’s also about the reputation that crime can give a company.
Think about it this way; if a neighborhood starts to become well-known for criminal activity, people start to steer away from it. They worry that if crime is taking place, that activity could leak over and directly affect them. The same concept goes for businesses. If consumers don’t feel safe or secure working with you, they’re going to go elsewhere for their products and services. Since consumer loss is one of the biggest threats to business, this is a significant threat.
The same concept goes for employee retention. If employees don’t see a company going anywhere or, worse, fear about their workplace safety, you’re going to experience a high turnover rate.
All in all, criminal activity has more lasting effects than you might think it does at first glance. Luckily, you can reign in the long-term effects of crime in your business by staying vigilant for signs of crime and acting swiftly rather than looking the other way.
Maxwell Donovan is the writer to this article. He is a regular contributor at many sites and mainly focuses on business related topics. He also poses a great knowledge of event planning.