Loss Prevention Strategies For Small Businesses

When you are a small business, every penny counts. So you need to look for ways to stop money from being wasted where possible, just because it really does impact small businesses. Shrinkage and loss is common in pretty much all industries, so it is to be expected that there will be an element of that in your small business. But if you work in retail of any kind (whether online or offline), then it is a more common problem than you may think. Each company will approach loss prevention differently, simply because it will depend on what the set up is (physical brick and mortar store or just a warehouse for storage, for example).

But there have been studies into this that have found when you put proactive measures in place for a retail business, then there is a dramatic reduction to the costs associated with fraud, loss, and theft. So for your business, if you want to save money for where you need it and reduce the amount of money that is lost, a loss prevention plan is a must. Here are some strategies that could help you to achieve all that you want to.

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Loss Prevention Team

For a small business is may not be in the budget to recruit a whole separate team to deal with loss prevention. But when you have the team on-board with what you are trying to do, and you have some designated staff that will take the lead with loss prevention, then it will make a big difference. If you have it in the budget for hiring warehouse security guard services, or have had a lot of trouble with theft at your warehouse, then something like that could be worth investing in, simply because you are likely to see it being worth the cost. So look at what you have in place at the moment and then you can go from there.

Security Cameras

For shops and warehouses, security cameras are a must. More than anything they work as a deterrent, as someone is less likely to try anything when they think they will get caught. And if theft still does occur and you have the evidence, then it makes things much easier for prosecution, as well as for insurance purposes; you have the evidence to show others why you’re at a loss, for example. It is a cost, of course, but it should be classed as a necessary cost in retail.

Improve Processes

Another reason why security cameras are good is that they can be reviewed regularly and you can see the areas that you need to improve on. For example, if the stats don’t add up to what you think is missing and what is actually missing, then it can be time to check what areas aren’t being covered by security, for example. Is there a corridor where staff are not seen on camera? Could that be an area where the loss is occurring? Make sure you check and update your processes and systems regularly.