Preparing for a rainy day
Written on the 23 August 2014 by Nick Sweet
Identifying the risks in your business is only part of the battle.
What do you do once you have identified what could go wrong, and how can being prepared put you in the best possible position?
In a perfect world there would be no such thing as risk for business owners. You would be able to come to work each day with a smile on your face knowing that it will be a good day. Unfortunately though we don’t live in a perfect world and the success of your business is constantly threatened by a range of factors, many of which are going to be beyond your control and often unexpected.
While it would be naive to expect to be able to plan for every possible thing that could impact on your business you can minimise the potential impact that unexpected risks can cause to your business by identifying risks and putting in place plans to deal with them. If you have a plan in place to deal with issues when they arise then you will be better placed to get your business back on track.
From experience many business owners do attempt to mitigate their loss in the event that something was to go wrong by, for example entering into agreements with third parties such as insurers. While this is a positive step often if it is taken without first seeking appropriate legal advice and it could leave you exposed if you haven’t read the fine print and do not know exactly what you have put in place. If you get it wrong now it could become far more costly and difficult to fix in the future. A good solicitor can help you understand what your business needs to have in place and will be able to advise you on the terms and conditions of any agreement that needs to be entered into.
Some of the risks to consider include:
Once the risks have been identified ask yourself what would happen if some of those things actually happened in your business? What contingency plans do you have in place? Would your business cope financially? Do you have adequate insurance in place to cover you in the event of an incident occurring? If in doubt speak to your insurance company and/or adviser to make sure that you are properly insured.
By being prepared and having contingencies in place you will be in the best possible position to handle any obstacles that stand between you and the success of your business. If you take the time to seek appropriate legal advice and follow the motto ‘hope for the best but plan for the worst’ it might just be the difference between success and failure.