5 potential pitfalls in your business
You put a lot of hard work into building your business. You have many loyal customers and enjoy an excellent reputation. However, in spite of all your success, a fire or flood could ruin everything. Even if you are compensated for material damages, those precious weeks (sometimes months) needed to complete repairs and restoration can make the relaunch of your business almost impossible.
We have outlined 5 potential pitfalls that could put you in a very precarious position:
1. Your customers leave you for a competitor
Unable to wait, they are forced to go elsewhere! Over time, they develop a close relationship with a business similar to yours and are unwilling to leave them.
2. Your best employees leave you
For them, this length of time without an income is unsustainable. Since you are unable to continue paying them, they have had to find another job and are no longer available.
3. You can’t pay your mortgage, your taxes or your suppliers
You know that some bill can’t be put off. Without any company revenue you risk defaulting on important payments. Unfortunately, this is often the first step toward declaring bankruptcy.
4. Your suppliers abandon you
Since your disaster, you may not be in a position to buy their products. Worse yet, you may be unable to pay existing bills. Remember, they also need to maintain their profitability! This could put an end to your former business relationships.
5. Your lose the confidence of your banker
You might need loans to restart the company or to finance future growth. If your banker has doubts about your ability to repay, these loans will be denied.
Now for the good news! Fortunately, you can avoid these pitfalls and minimize the negative effects by following the advice below. You can also protect yourself against loss of revenue with business interruption insurance. For more information, ask your EssOR agent!