5 Ways To Minimise Risk With A New Business

Ask any seasoned entrepreneur and they will gladly confirm that setting up a new venture is all about minimising risk and with a firm concept and thorough business plan, you are minimising risk of business closure. Of course, there are many ways to protect a business and here are just a few.

1. Business Plan - This should be your ’Bible’ and not just something to show a potential investor. The plan should outline the business, stating goals and objectives, while also listing detailed start-up and running costs. Marketing is another essential aspect of a business plan (primarily digital) and that should clearly show how you intend to reach your target groups. Have profit forecasts and an organisation flowchart to show who is doing what. Simply put, if you have a good business plan in place, you have greatly reduced the risk of failure by taking everything into account.

2. Consult With A Business Coach - This is the smart thing to do, as a business coach can teach you a lot. With so much competition, it is vital that you have a strong and definite plan that encompasses every aspect of the business. If you are still in the planning stages, search online for a Sydney business coach or one around your city and make an initial enquiry. They would love to see your business plan and if it passes with flying colours, you know you are good to go.

3. Taking Out The Right Insurance - Regardless of your chosen sector, you will need public liability (PL) insurance, which is often required by law. It covers you for things like injuring a member of public, or to compensate for any claims made by anyone. If you have employees, you will need employer’s liability insurance, which can be combined with the PL policy. This covers the business in the event an employee suffers an injury and makes a claim. Aside from this, you also need to insure the business premises, all company vehicles and, most importantly, your stock inventory.

4. Adequate Funding - The number one reason for business closure in the first year is lack of funds. If you want to avoid running out of money, crunch the numbers and include absolutely everything - plus enough money to survive the first 6 months without making a sale. It is vital that you have access to the necessary funds to manage the business. Talk to an experienced business consultant about funding options.

5. Cyber Security - What would happen if your website was hacked and you lost all your customers’ financial data? Every business should have cyber security, a service offered by the managed IT service provider and this really does remove a considerable risk to the future of the company. Your cloud provider is the one to talk to about cyber security, as they have all the solutions. Your network would always be monitored by experts.

You really do need someone to play devil’s advocate and the best person to do that is a business coach (easily found with a Google search), who will help you to improve your preparations and minimise the risk of failure.