Businesses are struggling to stay afloat financially. The pressure to take out loans to cover necessary expenses is becoming more of a reality for owners of small and medium size organizations. More often than not, these business owners rely on a combination of business and personal loans as well as credit cards to make ends meet. This makes circumstances even more dire for the owner if profits are lagging, as owners can face filing Ch 13 bankruptcy.
Keeping a business financially viable means paying constant attention to the bottom line, as well as how your products and services are doing. Keeping a competitive edge in today’s business world requires sound financial planning and responsibility that extends beyond management level to the employee level. This is true for businesses of all sizes, but especially for small and medium size organizations that typically work with less revenue and staff.
All businesses need to have a sound business plan, a working budget that covers costs, and accurate profit and loss statements. Another key is hiring the right employees. Having the right human capital is an integral part to ensuring that your business can avoid a financial crisis. Many large corporations conduct extensive background checks on potential employees before extending them an offer. However, small business owners tend to forgo the cost of conducting a background check to make sure their candidates are credible and responsible, which can ultimately put the business at risk.
As part of the hiring process, employers must do their due diligence on candidates with the following:
- Conduct a criminal background check
- Run a credit check
- Verify employment history
Following these procedures can help safeguard your business from employee theft and other problems.