As we all know, SMEs are the backbone of the UK. Not only do they provide employment to millions of people, but they also contribute billions of pounds to the economy each year.

Unfortunately, these businesses are also vulnerable to a wide range of threats. While most of us are aware of the more common threats such as cybercrime and data breaches, there are some lesser-known threats that SMEs should be aware of.

In this article, we will take a look at some of the lesser-known threats to SMEs and how they can be managed.

Loss of key personnel

One of the biggest threats to SMEs is the loss of key personnel. Not only is it financially devastating when a key employee leaves, but it can also be a huge disruption to the day-to-day running of the business.

The best way to mitigate this risk is to ensure that employees are well looked after and feel valued. This will help to reduce the likelihood of them leaving, as well as making sure that there is someone in the team who can take on their role should they decide to move on.

Of course, as an SME, this probably doesn’t always revolve around higher salaries. Instead, creating a welcoming environment and ensuring that you offer the best perks your company can afford can make all the difference.

Price wars

Another key threat is price wars. This is when two or more companies enter into a price war in order to win customers.

In order to protect your business from this threat, you should make sure that you are offering something unique or different to your competitors. This could be a superior product or service, or even just a better customer experience.

You can’t always win on price, but you have much more control over your USPs.

Competition

Competition is a fact of life for SMEs. It's important to be aware of what your competitors are doing and to make sure that you are offering a better product or service.

You should keep an eye on the market and be aware of any potential new entrants. This will help you to stay one step ahead of the competition.

Physical threats

With the emergence of cyber crime over recent years, more traditional physical threats have almost been forgotten about. However, they do exist, and they can be significant.

Again, this is something which technology can assist no-end with. As well as the standard techniques such as surveillance, there are visitor management system software and other similar initiatives that can help keep these threats to a minimum.

Regulatory change

Laws and regulations can change at any time, and it's important to be aware of how these changes could affect your business. One only has to look at the huge impact GDPR had on businesses several years ago when it was first introduced.

It's important to ensure that you are compliant with all relevant laws and regulations. This could involve having a team of advisors who can help to ensure that your business is compliant.

Supply chain disruption

Supply chain disruption is another threat that SMEs face – and very real in today’s world. This could be anything from a supplier going out of business to natural disasters impacting your supply chain.

The best way to mitigate this risk is to have multiple suppliers and to ensure that your suppliers are reliable. Additionally, you should have contingency plans in place in case of any disruptions.

Conclusion:

With the emergence of cyber crime over recent years, more traditional physical threats have almost been forgotten about. However, they do exist, and they can be significant.