Loss Prevention: 4 Tips for Avoiding Unnecessary Business Costs

 Brooke Chaplan
  Jan 12, 2018

Security Camera

There are various types of business losses that can be a tremendous financial drain to your company. These losses may include theft, damages from natural events, unnecessary waste by your staff and more. Losses such as these can have a negative impact on your bottom line, and this financial loss could be hindering future expansion, product development, and other important plans. Finding a way to reduce and even eliminate these unnecessary expenses is critical. After you understand the types of loss that are affecting your business or that could affect it in the future, you can take a few steps to improve your operations in beneficial ways.

Use a Video Surveillance System

A video surveillance system can be used to monitor all actions on your property. This includes possible theft by your employees and customers. It also may include theft from burglaries. Video analytics can be used in combination with the surveillance system to improve the efficiency of video analysis. The footage from your surveillance system may be used to identify criminals and even to prosecute them in some cases. If you want to address the issue of theft, you must be able to observe actions on your property. Some video surveillance systems even have remote viewing capabilities so that you can watch live footage from any location where you have an Internet connection.

Train Managers and Employees

If you do not currently have a loss prevention program, you should develop one soon. All managers and employees should be fully trained in loss prevention. This includes training to identify loss issues within the business and to eliminate excessive amounts of personal waste. You may even have an anonymous system where employees can let management know when other employees are being excessively wasteful or may be involved in theft within the business. Remember to give your team a refresher course on loss prevention periodically for the best results.

Purchase Business Insurance

Accidents and mishaps can happen, and bad weather events may damage your property and business at any time. There are various types of business insurance that you can buy to reduce the out-of-pocket expenses that you may incur if a damaging event occurs. This coverage may pay for the loss of income if there is a fire, loss of products and equipment, liability issues if your company is sued and more. Talk to your insurance provider about business liability insurance, property insurance, loss of income coverage and other types of insurance that may be suitable for your needs.

While not technically your responsibility as a business owner, you may also want to make sure the benefits offered by your company are adequate for the needs of your employees. If your employees have a good health insurance plan, they are more likely to stay healthy and miss fewer days of work. You may also benefit from better attitudes from employees being compensated generously.

Focus on Energy Efficiency

Energy loss is another source of waste, and many businesses could be doing much more in this area than they currently are. For example, you can install solar panels to generate some or all of the energy that your business needs. You may also analyze processes to reduce redundancies that may be costing your business money. Upgrading outdated appliances and equipment can reduce energy consumption, and you may also unplug equipment that is not actively being used to prevent ghost energy usage. All employees can be trained on energy conservation practices within the business. Letting employees work remotely some days of the week could further reduce energy consumption.

There are many types of waste and loss that may be impacting your business in different ways. The first step to eliminating future losses is to identify the primary losses that are affecting your business today. You should also anticipate major losses that could happen, such as a natural disaster or a fire. After you understand the primary risks and losses that are affecting your business, you can use some of the ideas explored here to improve operations and potentially save a substantial amount of money in the years to come.

Loss Prevention: 4 Tips for Avoiding Unnecessary Business Costs

Brooke Chaplan

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most her time hiking, biking, and gardening. For more information contact Brooke via Twitter @BrookeChaplan.

Popular posts

What Do Foxes Eat? Unknown Diet & Habitat

What Do Foxes Eat? Unknown Diet & Habitat

In this article, you will discover what do foxes eat? The foxes belong to the Canidae family. Their appearance resembles the dogs. Moreover, foxes have many similarities wi...

Sep 19, 2019
What Do Bears Eat? Surprising Facts

What Do Bears Eat? Surprising Facts

Today, our topic is what do bears eat? We are going to talk about the eating habit of bears. Bears are giant and strong animals. Normally, male bears are larger than female...

Sep 18, 2019
What Do Mice Eat? Surprising Facts About Mice
Sep 20, 2019
  • Add Comment