3 Small Business Mistakes That Could Shut Down Your Company

If you're about to open a small business, congratulations! Well done on getting to this stage. Steve Jobs once said of small business that "[the] work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do."

This is true. When you're passionate about what you do, you do everything you can to make sure you are putting forth your best effort; opening your own small business is proof of that effort.

To nurture your small business in this early stage, you'll need to produce good work. This means that you'll have to avoid the pitfalls and mistakes other entrepreneurs have made that cost them their dream: owning their own business. Without a solid staff, stable business model or even cyberattack insurance, you could end up like one of the 8 out of 10 business owners who go out of business before they're even able to celebrate their two-year founding anniversary.

To keep your business from becoming another statistic, avoid these three small business mistakes!

Not following government regulations.
The first and foremost thing that'll land a business in hot water is not maintaining permits or abiding by regulations as required by the city, state and federal government. For example, if you run a retail business out of the state of California, your sales associates are required by law to have a minimum of eight hours between the end and beginning of each shift. If it's found that your business is not following the law, you will be reprimanded and could eventually lose your business.

Not maintaining insurance.
Business insurance is required by law in a majority of states. Without business insurance, you cannot legally operate your business and will therefore be shut down until you get the necessary policy.

Though cyber insurance is not yet required by law, not having it puts your business at risk. According to Small Business Trends, 43 percent of all cyberattacks target small business. Security Magazine reports that a data breach costs small businesses an average of $36,000. As a young company, you likely don't have the financial resources to pay a cyberattacker's ransom or pay for litigation should you be sued by a third-party. Cyber insurance will cover those costs for an affordable annual premium.

Lack of a human relations department.
There will come a time, no matter how well your staff gets along, that an employee conflict will arise. The conflict could be between employees, or it could be a conflict between an employee and a manager. An HR team will help to diffuse potentially tough situations and will make sure that your business is doing everything by the book. You won't want an irate employee threatening to sue because they believed another employee was given preferential treatment or was fired without due reason.

To run a business well, you need resources. Get the cyber insurance you need today with CyberPolicy.

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