Insights

The big mistakes costing small businesses in New Zealand

Posted by Benedict Stewart on Dec 6, 2018 12:08:49 PM
Benedict Stewart

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It’s no secret that small businesses have it tough relative to their larger counterparts. It’s equally undoubted that a lack of resources, financially or otherwise, affects anything from credit ratings and capital raising through to people-power and technological capability. Due to the limited resources, small businesses are typically more exposed to external risks beyond their control, whether that’s an economic slowdown, a key employee resigning or losing an important contract. 

Given all these trials and tribulations, small businesses often don’t have the bandwidth to put in place good business practices. Upskilling the team and corporate sustainability are usually seen as “nice to haves” or long-term goals. But the daily grind gets in the way. 
 
This is a big mistake. Obviously small businesses can’t completely eliminate risks. But it’s vital to build resilience so that the business is ready to withstand a nasty event when it happens. The good news is that building resilience doesn’t have to cost the earth. In fact, it will actually save you money. Let me explain.
 
EASILY reduce insurance premiums
The problem with business insurance is that it is often difficult to price the risk. That’s because it so often depends on what a business does behind the scenes. Does it follow due process when hiring and firing? Does everyone understand how to spot cyber attacks? Does it have clear and robust policies to safeguard consumer privacy? Does everyone know how to spot and guard against bullying and harassment?
 
Now there is a way for insurers to get answers to these questions through Dacreed’s smart online training platform. This is why we partner with New Zealand’s fastest growing insurer, Delta Insurance, to offer a 10% reduction on your annual business insurance premiums. It’s a New Zealand first offer that rewards your business for reducing business risk. There are no catches, so why wouldn’t you?
 
Avoid personal grievance claims
Following due process builds resilience. Take employment decisions as an example. It’s so easy to get a small technicality wrong and end up on the wrong side of the Employment Tribunal’s verdict. Everyone has heard the horror stories: a small business owner dismisses a poor performing (or even abusive) employee but ends up slapped with a mammoth fine for taking a minor misstep. The trouble for SMEs is that with so much going on it’s easy to get the details wrong. There are resources out there to help you with just this. One of the best value options is MyLawGuide which comes jam packed with interactive business tools and checklists to help ensure you get it right. That way, you’ll be able to withstand any personal grievance claim, safe in the knowledge that you followed the correct process.
 
Foster a happy, safe workplace

Bullying & harassment in the workplace is a major issue. People are standing up and speaking out, which is good news because it means workplaces are getting safer. It also means there is increasing public scrutiny on the steps businesses are taking to keep staff safe from harmful behaviour. It only takes one nasty incident to end up on the front page of the newspaper. That could have lasting reputational damage, including loss of staff and customers. Businesses who get this right have fewer staff sick days, lower recruitment costs and better productivity. All of these contribute directly to your bottom line. 

 
Ensure staff training is targeted and effective

We’ve all sat through a few training seminars. You can’t help but feel all the information goes in one ear and out the other. The information usually isn’t tailored to each individual’s job role and there’s no way to reinforce and retain the information. This doesn’t build resilience; it’s just a waste of time and money. That’s where Dacreed’s online training can help. The platform can be targeted to each individual job role, it’s fully customisable and you can track completion rates. With Dacreed, your team will continuously stay up-to-date in the areas directly relevant to their position. There’s no better way to ensure your team are prepared to withstand everything that the business world can throw at them.


In an increasingly competitive world, these simple but effective steps will help you survive, thrive, and focus on what matters most. 


 

Topics: Business Management