In business, there are many costly issues that crop up on a regular basis that may cause loss of production, a lowering in quality or some other similar problem.
The key problem with all of these issues is that they cause you to either take a hit in profits or increase your expenditure. Either of these is not great for your business. However, there are times when specific costly issues may hit you that you never even thought of. Because of this, you have no contingency or back-up plans for them and take a financial hit.
So what are some of these problems? Read on for 4 costly issues you may not have thought of before.
Lack of training
Lack of training by itself isn’t the cause of lost revenue. What causes lost revenue is the scenario when a highly-skilled individual, leaves a business suddenly or has to take an extended leave of absence, leaving behind no other skilled individuals in their place. What then follows is a long period of time, when no single person can cover the role as effectively, resulting in slower and less reliable production. Don’t allow your business to become reliant on the skills of one person n particular. Make sure you have trained back-up personnel in case of an emergency.
As COVID-19 has proven, major infectious illnesses can shut down entire countries, let alone entire businesses. If your business is hit with a spread of major illness then production can take a serious hit. Especially when illnesses like the cold and flu can be spread so easily. While illness can’t always be stopped or prevented, should you suffer a large but short term loss of staff and workers, can you be sure that you can keep production going to at least an acceptable level. But do so safely.
The older buildings get the more repairs they require. Always make sure you have up to date inspections on your premises. Not all building work needs to disrupt production and cause too many major issues. For example, replacing the roofing for factories is an area of expense that can cause serious downtime to production if the correct procedures and precautions are not taken. In some cases, roof replacement can be done with almost no disruption to service at all. Just ensure that all health and safety procedures are taken before you go ahead with any work.
Power supply issues
Sometimes the power gets cut. It happens fairly rarely overall but it does happen. If you are based in an area that may be known for or is liable to blackouts then make sure that you have contingencies in place to account for any downtime. Consider investing in suitable generators that will provide power for your production if possible. Realistically you should avoid any such area, to begin with.
Issues can come from anywhere and you can’t be expected to prepare for them all. However, having an idea of what problem could occur is the first step to guarding your business against the financial problems they cause. Always be wary about what could happen. It is better to be prepared if possible.