Everyone has big dreams before starting a business, and they invest considerable time and energy in their product development and research. From spending days in market research to burning the midnight oil to perfect their pitch decks, the people spend their lives building a business empire only for it to crumble without compliance and other common pitfalls like no audience segmentation, poor analytics, auditing failures, and lack of intellectual property rights.
Top Mistakes Companies Make
Poor Outsourcing and Unclear Objectives
Companies often falter in outsourcing when they start the process without clearly understanding their needs and expectations and go on to choose price over value in their processes. This becomes the origin of poor communication, disarray, and financial losses.
Policy Gaps & Inadequate Risk Management
Without the expertise of advisory and consultancy services organisations, companies might be fighting a losing battle against business threats. The lack of policies and procedures for problem solving as well as dynamic risk management operations causes poor decision-making in the face of financial, operational, and reputational adversaries.
Inaccurate Financial Record-keeping
Miscalculations in transactions, delayed record keeping, and discrepancies in financial reporting are common and deleterious financial auditing mistakes that businesses often make due to lack of policies and in-house talent. This becomes a major roadblock for legal compliances and the absence of data about financial health results in poor cash flow and budgeting.
Non-Compliance with Regulations
Professional consultancies also provide legal advisory services, ensuring that the company meets all government regulatory frameworks and standards of operating. These standards of operating are not just for namesake; they are laid down to safeguard the interests of the business and the people working in it. However, these systems require extensive knowledge to navigate through the processes and establish functional operations in the company, which businesses often cannot follow due to lack of experience and insights.
Neglecting Cybersecurity
Cybersecurity is a dynamic landscape that keeps evolving each day. This requires extensive resource allocation in IT systems and teams, which can be overwhelming for a lot of businesses. Hence, it results in a state of operational paralysis, leaving the company vulnerable to cyber attacks.
What Businesses Can Do
Such mistakes are common in companies due to lack of insights but you can avoid them by implementing the following:
Proactive Risk Management Processes
Risk management strategies involve investment in systems of behavioural analysis for cyber security, and using a forward-thinking strategy by incorporating AI and machine learning to identify potential vulnerabilities and assess them to formulate an action plan. Additionally, having vigorous SOPs for all events is the key.
SMART Model—Establish Clear Goals and Metrics
A popular business model for all operations—from outsourcing to marketing—is having Specific, Measurable, Achievable, Relevant, and Time-bound objectives for every department and process. It clearly communicates expectations and responsibilities, which is indispensable for success.
Taking Help When Needed
Running a business is overwhelming—and as a business owner, your prime focus should be on business growth and market penetration. Hence, it’s best to take help from experts from your network to avoid common pitfalls and focus on business development.
Our experts at TRC Corporate Consulting are known for their competency in streamlining business operations and providing end-to-end legal advisory services to protect businesses. Contact us today so you can focus on your business growth with our advisory and consultancy services.
