Let’s face it, starting a business of any kind and running it successfully is a challenge when it comes to risk management. The risks come from the unpredictability of various factors of your business: what will the preferences of your customers be, will the company’s plan and program succeed, how will the overall economy turn out, where will the competition go next, etc.
It is of great importance that you are aware of the risks that you may confront in your business and appropriately make them your priority since at least some risks are possible, predictable, and definitely likely in every business.
The typical business owner is paying less attention to risks, sometimes ignoring them completely. At the beginning of your business journey, this may be a good thing because it helps you not get paralyzed by over-focusing on risk management. But as your business develops, you should probably adapt and be completely aware of all the risks that your business brings. Instead of trying to totally flatten the risks, you should decide which risks need to be handled at which point.
So, what are the biggest risks you will have to manage?
When operating a business, you’ll come across several main risks you will have to pay attention to.
When gathering your team, there are two things to handle: hiring the right type of employees and not losing the best ones to competitors or losing them because they are not satisfied with their job. This is most important when you are a startup and depend on a small group of people, so pick the most valuable ones. However, you also need to motivate them to keep pushing hard with you to achieve growth. As your business develops, you will have to pick the ones that stay and motivate, praise, and reassure them that they are safe and well rewarded with you.
It is very important that you handle the legal part thoroughly. You don’t want the government to be your enemy when you want to succeed as an upcoming business owner. So, get all the business licenses, handle tax compliance, respect employment laws, etc. Besides that, guard your intellectual property, and don’t steal from others. Also, always have professional liability insurance to avoid losses due to human (employee) errors. Invest in education and work safety if you want to avoid potential lawsuits.
Always ensure everything, watch your budget, look out for possibilities to invest, and be sure that the clients or banks don’t rip you off. When you start a business, banks will offer different kinds of services so be sure to read everything and decline unnecessary services like junk insurance. Also, you will need to have someone reliable to check the stock market, and also real estate value all the time, if you don’t want to be surprised by a sudden fallout or having to move your business because you can’t afford the property, etc.
If you are a totally fresh startup where you are your only employee, consider working from home or finding a co-working space, to save money. Investing in office space right away might pay off, but it might seriously damage your initial profit if you don’t grow fast enough.
There are different kinds of security risks you have to pay attention to when you are starting and developing a business. Make a firm strategy, which will keep your company safe both physically and intellectually, employ only the most reliable people, and invest a little more in your internet security.
Pay a lot of attention to customer data, so there are no breaches happening along the way – make this one of your priorities. Also, identity theft and fraud are frequent occurrences when you get more successful and competition is fierce. More than ever, you will need to guard your data, financial info, etc.
Of course, the security of your physical property is a must too. Get some good locks, cameras, and security guards, and you are set. The same goes for your company’s vehicles.
Reputation is always an important factor, even when you are just a small startup and you are seeking more attention and clients. From the first customer you work with, leaving a good impression is a must.
So, treat every customer as your first one, never drop standards. Every one of them can make or break your reputation, especially in this age of social media.
As we are talking about social media presence, we also have to mention that PR (public relations) is a factor you have to handle literally all the time. Internet presence, TV and other kinds of commercials, or even the news section – every component is equally worth handling gently and thoroughly.
All the risks we have presented here are crucial. Without enough care, every one of them may bring your demise. Nevertheless, don’t let them become an obsession. While you grow, find people that can handle these things and you will be able to focus on other business plans just fine.