Small businesses, especially unprofitable businesses, seldom get targeted for business espionage and social engineering. It is the successful ones that are at the highest risk. The moment you begin expanding your business, you place yourself in the cross-hairs of digital thieves and increase the damage caused by making mistakes based on misinformation. This means you need to protect yourself if you want your business expansion to be successful.
Mind Your Data
Your laptop is your business lifeline that contains all of your ideas and customer information. It is the prime target of a hacker and the most important asset your small business owns. To prevent loss of this information and protect your computer against malware attacks, use a cloud service with encryption. Cloud storage keeps your files safe on an off-site server so they do not get lost if your computer’s hard drive crashes or a virus takes it down. Encryption keeps your data safe from prying eyes while you are transmitting it to and from the server.
Monitor Your Online Presence
Social media and web-based commerce have given small businesses a strong foothold in global markets. Facebook, Twitter and Pinterest are cost-effective platforms for you to get your marketing message out to a large, diverse population. Unfortunately, they can put you at risk for identity theft. To protect against this, use a service like LifeLock to monitor and fix attacks on your digital life. Remember that as a small business retailer, there is a fine line between your personal and business identity, so you need to protect them both.
Understand Employment Law
If you make a mistake with federal laws, it can be costly for your business. This is especially true if your expansion requires you to hire staff. The Internal Revenue Service has specific rules regarding the number of hours an employee can work, the way in which they are classified and the minimum pay. You also need to pay payroll taxes quarterly for your employees. If you mess this up, the best-case scenario is that it will cost you 10 percent in fees. Speak to an accountant to safeguard your most valuable asset: your employees.
Know When Assets are Good
One of the logical ways to expand your business is to find an office, store or warehouse that is not your guest room. The choice between leasing and buying is not an easy one and it will have an impact on the way you report your income and equity. If you are thinking about getting an investor, this is especially important. You can increase your balance sheet without affecting your income if you purchase an asset like a building or equipment. In comparison, leasing does not change your assets but does decrease your net profit and its associated taxes. Do not dig yourself into a hole during expansion and understand the difference between capital expenses and operating leases.
Be Globally Savvy
In the internet world, expanding your business means that you are entering a global market. This comes with substantial risk. Local customs, government regulations and political upheaval can put your business, staff and you in danger. Cover your assets and safeguard your traveling staff with insurance. You also should have a local expert help your staff understand the culture and politics of any place they are traveling.
