• How loss prevention can help your company succeed and thrive
• Setting up systems and process for loss prevention are crucial
• Training for your staff can go a long way to prevent theft

My heart sank as I realised my business had failed.

My first business was in the auto industry. I was pretty excited and had such great plans for growth and expansion. However it FAILED. I suffered a huge loss.

I reflected to see where I went wrong. I thought my market analysis was complete. I thought there would be huge demand. So where did I go wrong?

How could I have prevented this? Experiencing loss is not usually fun especially when you have invested time, effort and money. Especially, when I had so many great plans depending on the success of this business.

What about your business....Your retail business/company ? How protected are you against loss?

Why should you be concerned about preventing loss in your business as a retailer?

When you experience loss it reduces your profits, cashflow and more.

It is so important to have measures in place in your business to reduce preventable losses such as theft and fraud.

The following are key action steps for loss prevention for retailers:

 Awareness / Understand the likely areas of loss for your business

Understand your risk in the areas of shoplifting, distraction theft, push outs, swallowing stock,credit card theft, counterfeit money, insurance claims and fraud and so on.. The list is endless, however asses your business, operating procedures and systems and identify the likely areas of loss as well as proceed to set up relevant systems and processes to mitigate loss.

Set up systems and processes

How will your team handle theft and also how will it be mitigated? Review the floor layout if you have brick and mortar stores. “Never lose sight of the goods” How quickly will the police be called? False arrest costs your business so have measures to be clear when the police will be notified. Who will be the witness when an accused person is approached? What doors will be locked? Will there be a security guard on the premises? Will there be armored services used? Have a process to record the events timely.

Training

Team training is very integral in loss prevention. It is usually a good idea to bring in trainers who will position the team members with strategies and current information in regards to loss prevention. What are the likely signs or body language of a shop lifter? What should the team member look out for? If the security alarm goes off what should be the first action taken by the team?

Review financial results quickly

Some losses can be identified by effective review of financial numbers. Set up this process in your business to review results at least monthly. Compare various numbers to quickly identify irregularities or huge swing in variances and investigate quickly so that corrective action is fast.

Enviroment Analysis

Be aware of your internal and external analysis. Risk areas can include financial, operating, health , continuity and more. Look at the your business through 360 degrees analysis to see the impact of all the areas on risk. Review for new loopholes in operating – the cash register, how are seasonal employees trained, how is cash handled on the premises?

Be aware of your online store risks as well, cyber theft, stealing of client information etc. they all lead to loss in your business that need to minimized.

Bonus Points:

Risk originates internally and externally  - be aware of risks in both environments of your business.

Seek to constantly improves your risk loss practices in your business

Errors and omission of information/data will put your business at various risks for loss

Supplier Fraud should be understood and taught to relevant persons

Keep your eyes on physical security, cash handling, product safeguard and your team especially!!

I went to start other businesses, taking the lessons learnt from my first major loss to do better. You can never eliminate losses or fraud however seek to minimize them and its impact on your business.

The above guide will help to minimize losses and fraud in your business, review quickly and implement as needed in our business. Be committed to continuous improvement in your loss prevention strategies in your business.