Successful business owners have to be able to take risks. However, they also have to find the balance and know what chances are worth taking. Taking risks isn’t about being reckless but about making the right choices to achieve the goals you have set. Running a business takes hard work, but do it right, and you will reap the rewards of customers, revenue, and satisfaction.
There are always going to be things beyond your control – take, for example, the Coronavirus pandemic we are currently in. No one saw that coming, and there was no way that businesses could have been prepared for it. One good thing is that we are all in it together, everyone’s business is struggling, and we’re all in the same boat. However, there are some risks you can prepare for so that you can minimize damage, and here are three that can sometimes be overlooked.
Physical risk includes any risks to your employees, buildings, and assets. So think fires, water damage, theft, vandalism, and road accidents. Physical damage will result in repair or replacement costs and can also lead to legal fees if you are found liable in some way. If you are in the logistics industry, then there are road accident risks, and you may find yourself needing a truck accident claim representation.
To minimize physical risk, make sure that you have installed fire and smoke alarms, sprinkler systems, burglar alarms, and fire escapes. Ensure that you and your staff know where all the exits to your buildings are and make sure the right insurance covers you.
Technology is usually the cause of the most common risks we face in business today. These risks can range from anything as simple as a power outage through to hardware and software failure, malware, and cyber-attacks. These risks can lead to loss of time through systems and equipment not being in working order, loss or corruption of data, and in some cases, data breach.
Reputation risk is one of the most commonly overlooked risks, yet it is a company’s single, most valuable asset. This is particularly important for small businesses because they need to create an excellent reputation to grow: if nobody has heard of your organization or only knows bad things about it, they are unlikely to become a customer.
As people increasingly used social media and technology, reputation has actually become both easier and harder to manage. On the one hand, it is harder because every customer has a public place and an audience to go to and say what they are unhappy about. But on the other hand, you are usually aware of what is being said and can rectify the issues. You can’t just sign up for a Twitter account or create a Facebook Page; as a business owner, you should monitor online conversations about your brand and participate in them too. It’s essential to have a social media policy, defining how your employees should interact with customers and how the company should be portrayed on both company and personal pages. This will ensure that your employees are aware of how their social media use can have both positive and negative impacts on the company.