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Insights on money, career and trading

Understanding the Business Costs of Negligence

Posted on January 22, 2019 by Daniel at 12:18 am

A lot of times when you think about profit margins as associated with your business, it’s all about making money or improving your finances through income. However, it’s important to understand that there are negative factors that influence financial success. In other words, there are negligent behaviors for business owners that directly lead to additional business costs that are entirely unnecessary.

 

A few examples will illustrate this point. First of all, think about what happens if someone has an accident on your business property. Of course, you did not mean for anyone to get hurt. But, if some behavior of yours was negligent in the accident and the injury is necessarily your fault, that can be a huge business cost that can follow you around for years. Secondly, some business owners try to avoid regulations to cut corners with costs. If you get caught though, the fine that results will be much worse than if you had taken care of things in the first place. And finally, if you’re negligent about keeping your workers happy, that leads directly to high employee turnover and toxic workplaces.

 

Accidents on Your Property

 

You are responsible for the state of your business property. If someone gets injured within your property lines in a slip and fall accident, and it happened because you didn’t clear away ice patches or did not clean up water puddles for did not take care of loose rocks on the ground – those are all instances where you are at fault. You need to keep maintenance up on your property, or when a slip and fall accident occurs, that is a huge personal and professional hit against you and your business.

 

Avoiding Regulations

 

As far as worker health and safety goes, you need to follow OSHA regulations. You might think that you’re being smart by cutting corners and saving costs on regulatory measures, but the first time something terrible happens to a worker, or you get caught by an inspector, you’ll be quickly in trouble and may have to pay significant fines because of your decisions. Especially when it comes to people’s health and safety, regulations are there for a reason, and any kind of negligence that leads to harm or injury is going to come back to haunt you financially and professionally.

Worker Unhappiness

 

How important do you think it is to keep workers happy? If you feel that you don’t have to worry about that too much and are negligent about allowing toxic workplaces to bloom within your company structure, then you’ll quickly find out how much of a problem this can become. Not only do you have the potential for a high employee turnover rate, but there are also lawsuits potentially waiting to happen if people are unhappy with your business practices and eventually turn on you to try to punish you for not paying attention.

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Insights on money, career and trading