I am very lucky to have expert colleagues and friends, who provide perspective and advice when needed. Not everyone has valuable access to such intelligence. Some business people don’t know they even need certain things, because they are busy getting set up or expanding. Keeping their doors open is enough distraction.
New business owners naturally get caught up with their business plans and projected earnings. Many have little idea of all the areas where risk can make an impact, but for some it can go far beyond their worst imagining. That’s why it’s worth getting in a risk consultant, even if it’s only for a couple of days, to discuss your business and your future plans and to raise awareness of risk and how to deal with it.
Projected earnings, profit and loss, and insuring against some potential losses is not enough for a sudden bout of fabulous success. Most people associate risk with potential loss, but this is only half the story.
Business plans focus on income, outgoings and forward projections, but the possibility (likelihood) of unexpected
events occurring, such as a key person becoming ill, or leaving, natural disasters occurring, economic conditions changing, or growth without adequate levels of cash flow to support growth, are all representative of potential risks which can de-rail a business, sometimes with catastrophic effects.
In other words, what you think will happen and what reality brings can make your balance sheet forecast start to look chronically ill.
How well constructed and thought through is your business strategy? Does it take into account and meaningfully address risks?
I have seen successful businesses expand too fast, take on too much liability and lose the lot. No one can promise complete security or certainty for any organisation. Taking on risks and managing them in a way which satisfies the risk appetite of investors can seem easy to handle hypothetically, but changes very quickly if risk management is not properly addressed, fully understood, communicated, and embedded in the business.
It may even be the case that your business is international, although small. In this turbulent world, economics, politics, natural disasters, weather, bureaucracy, even war have to be considered as part of any comprehensive and meaningful risk assessment.
One professional risk management consultant I know is Grant Griffiths, who in my opinion takes as much care and diligence with a small to medium sized business as multinationals. Risk affects everyone.
As a coach I have to help clients address these and other issues. There is no financial incentive or agreement for such recommendations for me, except the peace of mind it gives to my clients when they know they have accessed specialist services.
Contact me for a free chat about coaching.
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