7 Ways to Protect Your Business Assets and Improve Cash Management
In the summer of 2022, South African business owners announced a 13% increase in crimes against businesses.
In uncertain economic times, business owners around the world are increasingly looking to minimise risks through improved cash management, valuables-in-transit security measures and other risk management solutions.
In July 2022, South Africa’s inflation rose to 7.8%, an over 13-year high. As our country gets back on its feet after the devastating economic impact of Covid-19 and Russia’s invasion of Ukraine, protecting your business’s cash and valuable assets is more crucial than ever.
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Here are seven general tips for protecting your business assets and cash, regardless of economic stability.
1. Incorporate your business
If your business is not already incorporated, doing so will protect both you and your business. Incorporation shifts liability away from you as an individual, meaning that your business, not you, is liable for business debt. You do not want to be caught without incorporation and have the liability of repaying debt resting on your shoulders.
2. Keep business documents in fireproof locations
While economic uncertainty continues, so does widespread general uncertainty. Natural disasters can occur at any time, putting your business at risk. In January 2022, South Africa’s historic Parliament complex in Cape Town was damaged by a devastating fire. Even during the best economic times, such disasters can completely disrupt a business’s ability to operate efficiently, destroying countless valuable business assets in the process.
3. Invest in digital security and security systems
In the summer of 2022, South African business owners announced a 13% increase in crimes against businesses (compared to the previous quarter). This included more than 25 000 reports of crimes, including extortion.
While not all crime can be prevented, the right systems and cash management efforts can protect you, your business, your employees, and your customers. It is important not only to protect your business’s cash but also the biggest asset to your company, its people. Crime, including threats and theft, not only costs businesses huge amounts of money but can also damage a company’s reputation as a secure business location.
4. Invest in the right kind of insurance – an insurance underwriter
Like incorporating your business, having the right insurance coverage via the best-suited broker is crucial. Also ensure that your broker understands all the risks your business is exposed to and is well versed in the various insurers to cover those risks – including specialised insurers for your assets in transit. While incorporation shifts liability from you to your business, insurance transfers some risk from your business to the insurer.
The types of insurance you require will depend on the nature of your business. For example, online businesses that have no office location may require more insurance for valuables in transit and less for brick and mortar. In addition to obtaining insurance, be sure to update your insurance coverage regularly.
Revolute, a custom end-to-end South African insurance underwriting agency, will ensure that you receive the best possible advice on insuring your cash and valuables in transit. In addition, they can also provide invaluable advice in terms of setting up the right and most cost effective cash management systems.
5. Keep a personal financial backup
If you’re passionate about your business, you may be tempted to put everything you have into it. While this extreme passion is honourable, it can also be problematic. Protect yourself as a business owner with backup cash. Continue to add money to your retirement account and have an accessible emergency fund.
Continue covering yourself (and your family) with what is needed for everyday living and the uncertainty that comes with daily life. While you may think you are safe, risks are always present, so be prepared for the unexpected.
6. Plan for the worst (and the best) with risk management solutions
Insurance will protect you from some losses, but there are always additional business risks that are not covered.
Risk management identifies and reduces your business’s unexpected risks and threats. It is important to consider both positive and negative scenarios to determine how you will handle emergencies. Once a problem occurs, it may be too late to implement a solution.
Prepare for unexpected risks and emergencies while you’re not in stress mode. Gather your team, even if it’s just you and a few trusted people, and discuss the “what ifs” of your business. Have alternative plans ready to implement if your first option is unsuccessful. Businesses that have contingency plans and solutions in place for unexpected events are more likely to survive hard times.
Specialised insurance underwriters like Revolute can ensure that your cash and valuables in transit are adequately protected. Plus, with the ability to give expert advice on cash management solutions, they can help give you a helicopter view of the cash movements in your business.
7. Plan for the future
Succession planning is another type of insurance. It can’t be bought, but it is an essential requirement for protecting your business. Whether due to planned retirement or unforeseeable circumstances, planning for succession at all levels ensures that your business operations are not unnecessarily interrupted when people leave your company.
Every employment position in a company is essential to its success. Ensure that you do not only have succession plans in place for leadership, but create succession plans for staff as well. People change jobs for all kinds of reasons, and you can protect your business better with documented plans for each position across all departments in the company.
Improve Your Cash Management and Protect Your Business Assets with Revolute Underwriting Agency
All these recommendations may sound daunting. The good news is that Revolute is a great place to start when it comes to securing your valuables in transit and securing reliable advice on which cash management system and solutions are right for your business.
While many business owners, especially where the emerging informal sector is concerned, still put their cash in a plastic bag or briefcase and take it to the bank, Revolute offers the alternative. Apart from an enormous amount of risk associated with this procedure, it makes it very difficult for business owners to know how much cash is available in the business, the bank, on the ground, or in transit.
As a specialist in cash, specie and bullion in-transit underwriter, Revolute makes use of cutting-edge technology that reduces onsite theft and effects of cash-in-transit heists.
Learn more about Revolute’s commitment to protecting your business today. Visit us at www.revolute.co.za or contact us for more information.
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