Being able to work for yourself and setting up your own business can be a dream for many people. It can be the challenge of creating something for yourself that you can drive to be a success, as well as being the person in control and being your own boss. And all of that sounds well and good, right?
But if that is the case, why don’t more and more people do it? The reason being, is that there are definitely some risks involved with running your own business and being your own boss. There are risks each day when you’re working for yourself, and you have to be the one to deal with it, rather than someone else.
That being said, there are many advantages to working for yourself and running a business of your own. But to help provide some balance, here are some of the risks that you may face, and the things to be looking out for. Then you can be in a better place to manage your risks successfully.
1. Physical Risk
There are going to be physical risks to your business, because your business will be made up of physical things. From laptops, computers, offices, and warehouses, these will all carry risks for your business, and things need to be put in place to make sure that you are able to deal with it all.
There can be a whole host of things that can go wrong with the physical things that you have, such as natural disasters, fires, theft, and vandalism. Insurance for your business is a must really, as then you at least have protection should anything like that happen to your physical business.
You won’t want to slow down production or growth because of having to deal with something stolen, for example.
2. Strategic Risks
The decisions that are made for your business will bring some form of strategic risk for the business. The choices that are made are generally made to help the business to achieve the goals or aims that you have set out for it.
But there is always going to be a chance that what you choose doesn’t go to plan. There could just be plain bad or ill-thought out decisions that are made, as well as just not being able to execute them clearly, or that they are not rolled out in a good or timely way.
Cash flow can be a problem when there are strategic things that go wrong, as well as missed deadlines or lack of sales.
In order to combat this kind of thing, it is a good idea to regularly check over your business processes, and keep on to of what is going on. It is also a good idea to set yourself clear key performance indicators, to check that you are on track for things.
3. Development Risks
In order to help your business to grow and do better, then there are going to be a certain degree of development risks that come as a result of growth.
It could be the decisions to relocate or move things offshore, that could lead to other issues out of your control, such as government changes or legislation in the new country, or things like service provider risks. When you expand you may choose to outsource to suppliers or vendors.
And it can be a risk as they have to meet things at their end in order for you to meet your deadlines. So research for all of this kind of thing is really key.
4. Technology Risk
We live in an ‘information age’ where we have access to so much at our fingertips through technology. And as a result, it is highly likely that you use technology in your business.
There are risks that are small, from things like power outages, to things that are much more serious like malware issues, or cyber attacks. These things can lead to down time on your business, loss of profits, and even data breaches.
Which is why making sure that you have the right backups in place, as well as things like anti-virus software in place, can be really key to helping minimize the destruction that a technology risk can have on your business.
As you can see there are risks that can come to your business. But there are also things that can be put in place to deal with them. You just need to put it all in place, before things get started.