Entrepreneurial Guide: 7 Business Risks to Take Into Consideration
Opening up and keeping a business thriving is tough enough in this day and age, not to mention all the risk that goes along with it. In our age of the internet and anonymity, building a brand can be quite daunting. With our updated society, there are even whole new crops of risks that you have to be on the lookout for.
There are so many statutes and laws governing how a business must be run; you always have to be on your toes when it comes to compliance. However, the organizations that make and enforce these regulations, like OSHA or more personalized local governmental bodies, are there to help you. They will work with you to ensure that yours is a safe, danger-free place of business.
Security and Fraud Risk
It has become quite popular for a business to have an online presence, a lot of the time it is through an app. While these may be fun for the customer to interact with your business, it also opens you up to a lot of hacking, phishing and other cyber scams and frauds. Getting good cyber insurance is a good way to head most of these off and try to repair the holes and breaches that have already been torn.
Operational risk is one that will cease all activity in operation at the business. It could be a natural disaster like a flood or fire or every worker coming down with the same strain of the stomach virus. One way to minimize the risk is to make sure all your files are backed up on Cloud storage, and maybe have a few remote workers. Though operations may be slowed, they are not yet at a standstill.
The whole worlds’ economies are in constant flux, fluctuating continuously. It is always prudent to put some careful study into market patterns, as outlined in this article by Adam Harrison Guild in regards to Silicon Valley. This is also so you can foreshadow an economic downturn and take appropriate steps. However, though the market is always changing, it is not always bad. Some good business trends may be a fantastic thing for your venture!
One thing too many business owners set store by is the adage ‘if it ain’t broke, don’t fix it’. That means if something is good, making a change can only be for the worse. Too often, business owners become comfortable with the way things are and will not make a change. However, this is a fantastic opportunity for your business to grow! You can engage a whole new audience and still seem relevant by just getting with the times, seeing a need and filling it.
Strategic risk is another way of saying that your whole business plan was wrong, right from the start. We, as people, change, and so does our society and our communities. They change so quickly that when you made a great business plan from the start, maybe by the end it looked stale or someone had already come up with the same strategies.
This one is pretty self-explanatory. In business, as in all other walks of life, your reputation is everything. Maybe there was a major scandal or perhaps a grassroots online smear campaign. You can pay professionals who will leverage and raise your business’ image. All you have to do now is keep a firm head, be professional in all you do.
Owning your own business is already hard enough, but it can be supremely rewarding. Take a look at these other risks involved, and you will have a better idea of which path to choose.