Could There Be Theft in Your Business? Here's What to Do Next
Happy Friday,
We’ve all had those moments where something just doesn’t add up—stock is missing, cash registers are short, or worse, a client reports missing jewelry. It’s an unsettling feeling, isn’t it? One that brings a mix of frustration and disbelief.
What stings the most isn’t even the stolen item itself—it’s the betrayal. After pouring your heart into building and uplifting a team member, to find out they might be taking advantage of your trust is tough to swallow.
I’ve been there, and while I’m still sorting through how I feel, I wanted to share this with you because it’s a real part of running a business.
As part of our community, my goal is to equip you with the tools and guidance needed to handle the real challenges that come with running a spa or salon. And yes, theft is one of those challenges.
Now, “innocent until proven guilty” never rings louder than in a situation like this. You may have a gut feeling about who’s behind it, but without solid proof, it’s impossible to act. That’s where staying calm and strategic comes in.
Below, I’ve outlined a step-by-step approach to handling theft in your business, so you can protect your team’s morale and ensure a thorough investigation without pointing fingers too soon.
How to Handle Theft in Your Business – A Step-by-Step Approach
- Stay Calm and Confidential
- Avoid public accusations or confronting the whole team. This can lead to panic and damage morale.
- Keep the matter private, sharing it only with key leadership or management.
- Limit the knowledge to necessary parties, like the owner, HR, and the spa manager.
- Gather Evidence
- Start reviewing security footage, transaction logs, inventory, and cash flow records. Look for patterns or discrepancies.
- Conduct a thorough audit of finances, stock, and appointments to uncover irregularities.
- Consider when and where the theft occurs (specific shifts, locations) to narrow down suspects.
- Increase Surveillance and Monitoring
- Ensure security cameras are installed or properly functioning in key areas (register, stock room, product shelves).
- Implement stricter monitoring systems, such as logging stock movements and restricting access to valuable items.
- Perform random inventory checks without alerting staff, so the culprit isn’t tipped off.
- Private Interviews and Conversations
- Meet one-on-one with key staff members, particularly those who handle cash or stock. Keep it casual and inquisitive.
- Subtly observe any suspect behaviors without making it obvious they’re being scrutinized.
- Reinforce Policies Without Singling Anyone Out
- Use this as an opportunity to remind the team of the company's policies on honesty and integrity, without making it about theft.
- Hold a general meeting to refresh procedures on inventory management, cash handling, and ethical behavior.
- Observe Behavioral Clues
- Keep an eye out for any sudden defensiveness, nervousness, or unusual overtime from team members.
- Notice if someone seems overly eager to explain discrepancies or avoids certain topics altogether.
- Consult HR and Legal Experts
- If needed, involve HR or legal professionals to ensure the situation is handled ethically and in compliance with laws.
- Ensure all documentation and evidence is clear before taking any action.
- Plan a One-on-One Confrontation
- Once you have solid evidence, schedule a private meeting with the suspected individual, with another manager or HR present.
- Present the evidence calmly and allow them to respond. Avoid accusations; instead, gauge their reaction.
Dealing with theft in your business is tough, but it doesn’t have to be chaotic. By staying calm, gathering evidence, and handling the situation with care, you can protect your team, your business, and your peace of mind.
Remember, we’re all in this together, and if you need to talk through any concerns or challenges, don’t hesitate to reach out. That’s what our community is for—helping each other through the ups and downs of running a business!
Until next time,
Much love,
Marisa