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