Profit, in the broadest sense, is sales minus costs. But there’s more to consider when it comes to calculating the gains or losses your business can enjoy (or lament). Smart loss prevention strategies can tip the balance sheet in your favour – for relatively minimal investment.
Typically, loss prevention is seen as a cost to the business, because it involves expenditure – of time, energy, and sometimes money. However, loss prevention strategies that are carried out effectively and efficiently will not only protect your bottom line, but can help your business run more smoothly, too.
There’s a lot that can go into a business’ loss prevention program, and much will depend on your industry and size of operation. But there are some universal features to consider – here are five guidelines for loss prevention strategies that are likely to benefit your business:
1. Guide employees
Employees who are properly informed of all hazards and properly trained on how to deal with them tend to be more efficient workers. They respond quickly to potential hazards and perform their work conscientiously, which adds up to increased profits by avoiding losses and increasing productivity.
If you don’t already have an employee training plan in place, it may be time to develop one. Take the time to consider what you need out of your staff and reciprocate with clear communication and respect. Employees, like any other group, tend to respond better when they’re treated well.
2. Provide opportunities
You’ll also want to provide your employees (and yourself) with opportunities to identify hazards through regular inspections, quality control programs, and procedures to handle deficiencies. The more often you devote time to careful assessment, the more likely you can avoid or reduce losses and maximize profits.
Not sure what you’re looking for? Consider calling on a risk management expert for some help and advice. Starting off your maintenance and inspection routines on the right foot can save you the time and stress that come with learning the hard way.
Take the time to consider what you need out of your staff and reciprocate with clear communication and respect. Employees, like any other group, tend to respond better when they’re treated well.
3. Focus on learning
Provide opportunities to learn from near misses, accidents without losses, and accidents involving losses to improve or create new loss prevention strategies. Despite your best efforts, you can’t always control outcomes; what you do in those situations can help your business perform better in the future.
Having a solid, up-to-date business continuity plan in place should be a top priority. After all, you have precious little time to react when you experience a cyber event, mechanical breakdown, or other catastrophe, and a written plan can mean the difference between total loss and swift recovery.
4. Share emergency procedures
Employees who are properly trained on emergency response procedures are excellent allies during an emergency. Their quick response could avoid or mitigate losses, protect assets, and ultimately save your bottom line.
An emergency contact list is at the heart of your emergency response plan. This will include a variety of contact information, from vendor phone numbers to crucial insurance details. You can get started on one for your company with the help of our emergency contact list template.
You have precious little time to react when you experience a cyber event, mechanical breakdown, or other catastrophe, and a written plan can mean the difference between total loss and swift recovery.
5. Ensure compliance
Complying with all safety legislation ensures that your dues are minimized, and helps you avoid any penalties or punitive damages for accidents. But basic compliance is also a good jumping off point for a best practices guide that’s tailored to the individual risks your business might be facing.
Ensure that your business is protected
Loss prevention is a team effort. When all levels of the company are involved in the creation, maintenance, and enforcement of your loss prevention strategies, there’s a better chance you won’t miss any crucial aspect or leave out a vital step. Success depends on care, consistency, and commitment: sticking to loss prevention strategies that speak to your business could be a faster way to greater profits.
But even though implementing loss prevention strategies will help with minimizing risks, things could still go wrong. That’s when having a tailored insurance policy can be helpful. To learn more about how insurance can help protect you, your business, your employees, and your bottom line, visit our Business Insurance page.