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1. Manage risks

Identify the main risks to your business and take steps to manage them.

Understand the risks to your business

Business risks are anything that could have a negative impact on your business. For example:

  • work health and safety issues
  • natural disasters and emergencies
  • economic conditions
  • government regulations
  • technical problems or cyber security incidents
  • legal issues
  • criminal activity
  • negative reviews or media coverage
  • staffing issues.

Understanding and managing risks helps minimise the impact of unexpected events. It can also reduce costs and improve your relationships with customers and staff.

Learn more

Checklist

  • Understand the main types of business risks and why you should manage them

Make a plan to manage risks

A risk management plan explains how you’ll deal with risks to your business.

Identify the risks to your business and how serious each one is. Then decide which risks are serious enough to treat and come up with strategies to manage them.

It’s important to include your staff and other stakeholders in this process. They can help you identify your biggest risks and suggest ways to treat them.

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Checklist

  • Decide on the scope of your risk management plan
  • Consult your staff and stakeholders
  • Identify risks to your business
  • Analyse each risk based on its likelihood and possible consequences
  • Evaluate each risk and decide whether to treat it
  • Develop strategies to treat risks

Get the right insurance

Insurance helps manage risks by protecting your business against financial loss.

Your business may need certain types of insurance by law or because other businesses you deal with require it. Other types of insurance are your choice.

It’s a good idea to get professional advice to make sure you have the right insurance.

Learn more

Checklist

  • Understand the different types of insurance and which ones your business needs
  • Get expert advice from a licensed insurance broker, insurer or business adviser
  • Review your policies regularly to make sure you’re covered

Create policies and procedures

Clear policies, procedures and processes help manage risk in your business.

They ensure that everyone in your business understands what to do and exactly how to do it.

Learn more

Checklist

  • Consult your staff to create or update policies or processes
  • Identify your most important tasks and create standard operating procedures (SOPs) for each
  • Document your policies, processes and procedures and make sure staff can access them easily
  • Regularly review your policies, processes and procedures

Look after yourself

Being a business owner can be stressful. And it’s hard to stay focused on your business if your mental health is suffering.

Some things that commonly cause business owners stress are:

  • long hours
  • heavy workloads
  • business finances or cashflow.

It’s important to learn the signs of stress and how to reduce its effects.

Get help from a trained mental health professional if you need it. There’s someone ready to listen and talk to you 24 hours a day, 7 days a week.

Learn more

Checklist

  • Understand what stress is and how it can you can manage it
  • Plan ways to maintain a healthy work-life balance
  • Get professional help if you need it

2. Be cyber secure

Scams, hacks and data leaks can be devastating to your business. Good cyber security helps protect you and your customers from harm.

Understand the threats to your business

Cyber-attacks are a serious threat to your business. Even a minor incident can cost you time and money. It can also be stressful and damage your reputation.

You need to know:

  • types of online threats to look out for, such as scams and hacking
  • how to protect your digital information
  • what to do if you’re a victim of a cybercrime or scam.

Learn more

Checklist

  • Understand which online threats could target your business
  • Get advice on cyber security for your business

Strengthen your cyber security

Put security measures in place to defend against cyber threats.

Start by securing your accounts and protecting your devices and information. Also teach your staff about good cyber security practices and the types of cyber threats that they might encounter at work.

Get professional help or use our cyber security checklist to identify other cyber security measures relevant to your business.

Learn more

Checklist

  • Protect your accounts with strong passwords and 2-factor authentication
  • Keep software and systems up to date
  • Develop a cyber security policy
  • Train your staff to be cyber secure
  • Consider cyber security insurance

Protect your customers’ information

Some businesses need to comply with the Privacy Act 1988 and Australian Privacy Principles. These businesses must safeguard all personal customer information against:

  • theft
  • misuse
  • unauthorised access
  • any other form of data compromise.

Destroy or de-identify customer information when you no longer need it and there is no legal reason to keep it.

To protect your customers and reputation, you should secure your customer information even if you don’t have to comply with the Privacy Act.

Learn more

Checklist

  • Check if your business needs to comply with the Privacy Act and Australian Privacy Principles
  • Know what sort of customer information is personal
  • Develop a privacy policy to protect customers’ personal information

3. Look after your finances

Tracking and improving your finances helps keep your business out of financial trouble.

Track your financial health

Review your financial position regularly to see how your business is performing and if it’s still viable.

Do this by reviewing and analysing key financial documents, such as your:

  • budget
  • balance sheet
  • profit and loss statement
  • cash flow statement.

Benchmarking and valuing your business are other useful tools for checking you’re in good shape.

Learn more

Checklist

  • Review your key financial documents for anything unusual
  • Benchmark your business against others in your industry

Manage cash flow

Cash flow means the money that comes in and out of your business. It can change because of things out of your control, such as an increase in supplier costs.

Some change in cash flow is normal. But it can be a problem if you’ve got less money coming in than going out over a long period.

To stay resilient, it’s important you manage your cash flow and plan ahead.

Learn more

Checklist

  • Use a cash flow statement to track the cash coming in and out of your business
  • Review your cash flow regularly
  • Find ways to increase your cash in and reduce your cash out
  • Have an emergency buffer to help you through lean times
  • Get professional help if you need it

Get out of financial trouble

Even businesses that track their finances and manage cash flow can find themselves under financial stress. This can be because of growing debts, reduced profits or many other factors.

Know how to recognise when your business is in financial trouble so you can act quickly. Seek professional help to give your business the best chance of getting back on track.

Learn more

Checklist

  • Review your financial records often to find problems early
  • Get professional help to address your financial issues before they get out of control

4. Protect your brand and reputation

A bad public image can have serious impacts on your business. Find out how to safeguard your brand and keep customers happy.

Protect your intellectual property

The intellectual property (IP) you create is an important business asset. IP includes your business name, brand, product designs and inventions.

The value of your IP can grow, so it’s important to protect it with IP rights. Having an IP right helps you take legal action if someone uses your IP without your permission.

Some IP rights are free and automatic. For example, copyright for writing, images and music you create.

Other rights need to be registered with IP Australia. These include trade marks, patents and design rights.

Learn more

Checklist

  • Identify your IP assets
  • Apply for IP rights in Australia and overseas (where needed)
  • Monitor the market for anyone infringing your IP rights
  • Renew your IP rights on time

Know your market

Understanding your customers, competitors and industry means you can make better decisions, avoid costly mistakes and be ready for change. This helps protect your brand and reputation.

Do market research to understand your:

  • customers, including who they are and what they want from your business
  • products or services, and what people think of them
  • competitors
  • business location and local area
  • industry, including current trends.

Use these insights to develop a marketing plan to reach your target market.

Learn more

Checklist

  • Do market research on your customers, competitors, products and services
  • Use your research results to develop or update your marketing plan
  • Make market research an ongoing part of your business planning

Handle customer complaints

Customers who complain are giving you the chance to keep their business. They may lodge a complaint in person, by phone, in writing or as an online review.

Handling a complaint well:

  • protects your business’s reputation
  • builds trust with customers
  • helps you comply with consumer laws
  • lets you fix a problem before it becomes an issue for more customers.

Learn more

Checklist

  • Develop and document a complaints procedure
  • Train staff in the procedure
  • Make your complaints procedure easy for customers to find

Choose the right suppliers

Choose reliable suppliers for the products or services your business needs. If a supplier gives you poor-quality products or doesn’t deliver on time, it can impact your business’s reputation.

Do your research to find trustworthy suppliers that fit your business. Work with them to negotiate a contract that benefits both of you.

Put in effort to maintain good relationships with your suppliers and resolve any problems quickly. This will help your business run smoothly and keep your customers happy.

Learn more

Checklist

  • Research suppliers to find the right ones for your business
  • Negotiate a clear written contract with each supplier
  • Maintain productive and respectful working relationships with suppliers
  • Review your suppliers as your needs change

Be sustainable

Being sustainable helps your business stay resilient and meet the growing demand for goods and services that don’t harm people or the planet.

Understand which sustainability goals, targets and actions are important to you and your customers. Once you know this, you can plan how you’ll achieve your goals.

Learn more

Checklist

  • Decide which sustainability goals you want to focus on
  • Develop a sustainability action plan and policies to support you and your employees
  • Identify any sustainability risks and add them to your risk management plan
  • Update your sustainability action plan at least once a year

Manage conflicts of interest

A conflict of interest is when the personal interests of an employee conflict with your business’s interests. For example, they accept a gift from a supplier that your business is considering for a major contract.

Conflicts of interest occur in all businesses. But you need to manage them correctly. Even the perception of a conflict of interest can damage your business’s reputation.

A clear conflict of interest policy helps your employees understand what might be a conflict and how to declare it. It can also include ways to manage common conflicts of interest.

Learn more

Checklist

  • Understand the different types of conflicts of interests
  • Develop a policy for declaring, recording and managing conflicts of interest
  • Add a conflict of interest clause to your employment contracts

5. Follow the law

Laws make sure that businesses treat people fairly. Understand which laws you have to follow to avoid penalties or legal action.

Know your legal obligations

To protect your business, know which laws you need to follow and how to comply with them.

The laws that apply to your business depend on things like:

  • your business structure and industry
  • what your business does
  • how it operates
  • whether you’ve got staff.

Reach out to a legal expert or business adviser if you need help understanding your legal obligations.

Learn more

Checklist

  • Work out which laws apply to your business
  • Make any changes needed to comply with the law
  • Get help from a legal expert or business adviser if you’re unsure which laws you need to follow

Get the right licences and permits

You need licences or permits for some business activities.

To protect your business and employees, it’s important to know:

  • what licences or permits your business needs
  • if the licences and permits you already have are up to date
  • the conditions of each licence and permit.

Learn more

Checklist

  • Check which licenses and permits you need
  • Apply for or renew licences and permits
  • Get professional help if you’re not sure which ones you need

Obey fair trading laws

Your business must comply with national, state and territory fair trading laws, including:

  • the Competition and Consumer Act 2010 (CCA), which promotes fair trading between business and the fair treatment of consumers
  • the Australian Consumer Law (ACL), which protects consumers when they buy goods or services
  • industry codes, which are rules or minimum standards for specific industries
  • state and territory fair trading laws, which incorporate the ACL but may have extra local laws you need to follow.

A formal compliance program can help you meet your obligations under the CCA.

Learn more

Checklist

  • Understand the fair trading laws and how they apply to your business
  • Get CCA and ACL training if you need it
  • Develop a CCA business compliance plan
  • Get legal help if you are unsure of any aspect of the fair trading laws

Respect consumer rights

The Australian Consumer Law (ACL) covers sales of goods and services in Australia. It includes rules for:

  • guarantees on goods and services
  • refunds, repairs and replacements
  • product safety
  • unfair business practices
  • protection from unfair contracts

Following the ACL gives consumers trust in your business, protects you against disputes and helps you avoid penalties and fines.

Learn more

Checklist

  • Understand the ACL and how it applies to your business
  • Make sure your policies, procedures and advertisements comply with the ACL
  • Give your staff ACL training if required

Label your products correctly

Some products must include certain information on their labels.

For example, your label might need to show:

  • where the product is from
  • its weight, volume or other measurement
  • nutritional information (for food)
  • ingredients, additives and allergens
  • a use by or best before date
  • safety warnings
  • an energy or water efficiency rating.

All information on product labels must be clear, accurate and truthful.

Learn more

Checklist

  • Understand the labelling laws that apply to your products
  • Label your products correctly

Understand contracts

Contracts are agreements to pay for goods or services. They:

  • are made between a hirer and contractor (or a buyer and seller)
  • can be a formal written document, a verbal promise or something in between
  • are enforceable by law.

Understanding contracts means you can negotiate contracts that work for you and comply with the law.

Learn more

Checklist

  • Understand the different types of contracts
  • Identify any standard contracts relevant to your industry
  • Know which laws you need to follow
  • Get professional help if you need it

Manage and resolve disputes

Disputes with contractors, suppliers, customers or other businesses can be stressful. They can cost you time and money, and in some cases lead to legal problems.

Clear communication and contracts help stop disputes from happening in the first place. But if a dispute does happen, there are steps you can take to manage it well.

There’s also help available if you can’t resolve the issue on your own. For example:

  • alternative dispute resolution (ADR)
  • debt collection services
  • courts or tribunals.

Learn more

Checklist

  • Get a clear understanding of what’s in dispute
  • Talk or write to the other party to try and resolve the dispute
  • Get help if you can’t resolve the dispute

6. Take care of your workers

Your workers are some of your most important assets. Protect your business by keeping your staff safe, healthy and happy at work.

Understand entitlements and protections

You must give your workers certain legal entitlements and protections. These are different between employees and contractors.

Knowing the rules helps you:

  • comply with laws, such as the Fair Work Act 2009
  • increase staff satisfaction and retention
  • improve your reputation
  • manage and resolve disputes.

Learn more

Checklist

  • Learn the difference between an employee and contractor to avoid sham contracts
  • Make sure your contracts and workplace policies comply with the law
  • Check you are paying the correct wages, tax, superannuation and other entitlements

Keep your staff safe

You must do everything you can to keep your staff safe. This includes creating procedures to comply with work health and safety (WHS) laws.

Ask your staff to help you find workplace hazards and the best way to control them. Getting their input shows that you take their health and safety seriously.

Learn more

Checklist

  • Develop a WHS procedure (if you don’t have one)
  • Identify workplace hazards
  • Assess the risks
  • Control hazards and reduce risks
  • Review control measures regularly

Create a mentally healthy workplace

A mentally healthy workplace is one where your employees feel supported, happy to come to work and comfortable talking about mental health.

Under work health and safety (WHS) laws, business owners must provide a mentally healthy workplace. This includes managing psychosocial hazards – work-related hazards that can harm people’s mental health.

A mentally healthy workplace means happier, more productive staff. This helps reduce absences and staff turnover.

Learn more

Checklist

  • Talk to your employees about mental health in the workplace
  • Identify any psychosocial hazards in your workplace
  • Develop a plan to control psychosocial hazards

Support professional development and training

Training gives your staff the skills and knowledge they need to do their jobs effectively and safely.

Training doesn’t just mean courses and certifications. It can also include mentoring, coaching or job shadowing.

As well as training for specific skills, it’s important to support employees’ long-term goals and development. This improves job satisfaction by helping workers grow in their career.

Learn more

Checklist

  • Identify any specific skills your staff need to learn to do their jobs
  • Organise training for these skills
  • Work with each employee to make a development plan for their long-term goals

Resolve employee complaints

If an employee reports a problem with their job or another person, it’s important to listen to them. Treat staff complaints as an opportunity to improve your working environment and relationships with employees.

A good complaints process is fair, confidential, transparent and accessible. It helps you understand the issue and develop a solution that works for everyone.

Learn more

Checklist

  • Develop a process for making and resolving complaints
  • Listen to and understand employees’ complaints
  • Work with the employee to find a solution
  • Follow up to make sure the problem is resolved

Manage changes smoothly

Change is a normal and essential part of any business. Embracing change can improve staff performance, enhance your products or services and grow your business.

How you manage change is important. A change management plan with clear goals helps keep you on track.

You should also engage staff and stakeholders early so they have time to understand and embrace the change.

Learn more

Checklist

  • Get a clear picture of what’s changing and why
  • Know your desired outcome
  • Create a change management plan
  • Communicate with and support your staff throughout the change
  • Encourage a culture of change in your business

7. Prepare for emergencies

Natural disasters and other emergencies can happen without warning. Being prepared helps reduce the impact and get your business back on track.

Plan ahead for emergencies

Preparing for the worst helps minimise the impact on your business if something unexpected happens.

An emergency management plan protects your business before, during and after an emergency by:

  • identifying risks to critical parts of your business and how you’ll manage them in an emergency
  • having a clear plan to follow when an emergency happens
  • guiding your business’s recovery once the emergency has passed.

Learn more

Checklist

  • Back up and secure your data
  • Record your emergency contacts
  • Create an emergency team and make sure they have the right training
  • Develop an emergency action plan
  • Review and practice your emergency procedures

Respond to an emergency

In an emergency, the most important thing is to make sure you and your staff are safe. After that you can look at protecting your business and its assets.

During an emergency:

  • Follow your emergency action plan and be ready to evacuate if you need to.
  • Get the latest warnings and alerts from local radio or your emergency services agency.
  • Always follow the advice of emergency services.

Once the emergency has passed, you can assess the impact on your business and what it will take to recover. You might be able to apply for emergency grants or low-cost government loans to help repair any damage and get back on track.

Learn more

Checklist

  • Follow your emergency action plan
  • Stay up to date with alerts and warnings
  • Make sure you and your staff are safe, including evacuating if necessary
  • Apply for government support if you need it
  • Re-establish your business and let your customers know
  • Look for ways to improve your cash flow as you recover

Get the checklist for this guide as a PDF or Word document (DOCX).

Get the checklist for this guide as a PDF or Word document (DOCX).

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