| Losses to the company can result from fluctuations | | | | roadmap. You must develop ways to evaluate losses, |
| in the stock market, economic downturn, employee | | | | predict them and avoid them. |
| crime and natural disasters. It is better to be safe | | | | 4) Collaborate with other Businesses. |
| than sorry, as many small businesses found out too | | | | In order to prevent losses, you should consider |
| late. The first step to loss prevention is identifying | | | | collaborating with other similar small businesses. You |
| areas of potential loss. | | | | can work with other businesses on issues like audit |
| Loss prevention includes risk management, protecting | | | | practices, loss evaluation and using statistical ways of |
| the interests of the shareholders and protecting the | | | | tracking trends. You could also collaborate on human |
| interests of the organization. It ensures uninterrupted | | | | resources, operations, risk management and other |
| business productivity and the helps the business | | | | related issues. |
| grow. | | | | 5) Focus on Key Areas. |
| Apart from strengthening the risk management | | | | Loss prevention should not be a diffuse program that |
| strategies of the management, you also need to look | | | | covers everything imaginable. Instead, you should |
| into the employee risk management strategies. Many | | | | focus on what can cause more loss to your small |
| losses to the company maybe caused because of | | | | business. In most businesses, losses are caused more |
| high insurance premiums on ensuring the employees. | | | | by employee claims than by natural disasters. The |
| Cutting Down on Losses: | | | | key is to prioritize and then allocate more resources |
| Here are some steps you can take to cut down on | | | | to areas that are more problematic. |
| your losses | | | | Consider Alternatives: |
| 1) Effective Management. | | | | In case the essential services and supplies are |
| The management at all levels needs to understand | | | | disrupted, whom can you approach for help? Keep |
| the company's goal of loss prevention, and undertake | | | | alternatives ready, whether for electric supply, |
| the same. | | | | essential raw materials, distribution, transportation, |
| 2) Employee Participation. | | | | promotion etc. |
| No loss-prevention program can be effective, without | | | | By considering all potential risk factors, you can |
| the participation of employees. The employees need | | | | prevent losses to your small business. Thinking |
| to be trained in loss prevention methods. You could | | | | creatively helps, since it gives you new ways to |
| try enrolling them in loss prevention training classes so | | | | tackle old problems of losses. |
| they know what to do before, during and after a | | | | If you are not sure how to tackle the problem of |
| situation that can cause loss. | | | | losses on your own, you can approach a small |
| 3) Develop a Program. | | | | business consultant for help. |
| The loss prevention program should have a clear | | | | |