“Reducing risk from a business perspective really comes down to having the right information to be able to make the right decisions.”
– Jay Fife, CEO of FusePhase
Let’s talk for a moment about something that every business owner must face: Risk.
No business owner really likes to think about it, but the reality is our big plans for our businesses might not work out the way we hoped.
The fear that things could go terribly, horribly wrong is what so often prevents people from launching a new business. It’s pretty easy to understand why: Everybody loves a sure thing, and a new business is never, ever a sure thing.
So, risk is all a part of having a business. We know this. But as the great Warren Buffett said, “Risk comes from not knowing what you’re doing.” And that’s where having the right information comes into play.
Here are some sure-fire ways you can reduce your risk and increase the probability of success for your business at any stage.
Five ways to reduce risk for your business:
- Take control of your cash flow – Always have a solid grasp on how you’re spending your money and where it’s coming from, now and in the future. Don’t worry, we’ve got a few tips for you on how to do this.
- Set up electronic invoicing – This is the quickest way to reduce your daily sales outstanding (DSO), which is the average number of days that a company takes to collect revenue after making a sale. This means you’ll have cash being funneled into your business a whole lot faster, giving you some extra protection against financial risks.
- Hire specialists – Especially when it comes to finance, HR or legal support, turn to the experts to help you as early on as possible in the life of your business to make sure all the bases are covered.
- Take care of yourself – In other words, feed that genius brain of yours! Focus on continually educating yourself by reading industry-related materials daily, and join a peer organization or two to exchange ideas and learn from other business owners like you. Again: Information, information, information.
- Use ongoing strategic planning – As your business grows and changes, your risks will too. So, you will have to take a strategic approach and always look at not only where your business has been, but where it’s going. Think carefully about the decisions you make today and how they may impact your business in the future, for better or worse.
On that final note, here’s a clip of our very own Jay Fife at the recent Emerging Business Seminar with some thoughts on the matter:
Having their own business is something many people dream of, but never actually do. You’re doing it! Cheers to you! From one growing business to another, we wish you all the very best.
Like this post? Share the love through your social networks by clicking any of the links below!