Council Post: 10 Risk Management Tips For New Business Owners
Risk management is incredibly stressful, especially as a beginner. Because of this, you may have a strong urge to put off certain aspects of risk management until a later date. My advice to new business owners is to fight that urge and handle any risk mitigation duties as soon as possible. Make the hard decisions sooner rather than later because the alternative to procrastinating is much worse. Putting off these difficult choices and decisions can limit your options in the future and can even cause more risk to develop as a result. – Bryce Welker, Accounting Institute of Success
The process begins by evaluating and weighing the risk. If you have no frame of reference, it’s difficult to determine what’s an important matter and what can be handled later. It’s important to refine your skills to pinpoint real risk so that you can manage it and save your business from any blunders. Think about the consequences of the risk at hand. You can divide them into categories of low, moderate and high risk to better formulate a plan of action that solves the issue and keeps consumers happy. When you know how a risk affects those around you, it’s easier to understand what you need to do. – Jared Atchison, WPForms
It’s important to protect your business and mitigate risk by getting insurance. Using insurance can remove a great deal of stress from your shoulders, however, using cookie-cutter insurance policies may not be enough. It’s a good idea to understand the different insurance packages out there and to pick the best one for you. Consider adding special coverage depending on the type of business you’re in. You want to cover your employees’ health and safety, and your most valuable assets. – Blair Williams, MemberPress
Managing financial risks should be at the top of a new business owner’s mind. You can reduce risk by setting up appropriate payment records and minimizing outstanding balances. It’s also important to identify credit risks early on. Avoid outside financing and loans as much as possible, and focus on building a great product. When you have a great product and make great sales, you should be able to fund your own business. – Syed Balkhi, WPBeginner
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