Starting and managing a small business is the dream of many people nowadays. With sufficient capital, great business idea, and adequate management and negotiation skills, one can now start their own business given the multitude of online platforms that cater especially to budding entrepreneurs.And indeed, to be an office employee, being a business owner also means that you can pursue anything that you want at your own pace and without anyone supervising your work all day.
However, building and running a business is not all milk and honey. Of course, in order to succeed,you need to focus not only on positive outcomes and opportunities that comes to your waybut also on negative factors which could delay you from achieving your goals. As such, it is extremely important that you have a well-planned risk management strategyso that you can recognize and address known risks before they escalate into a more serious, more damaging business problems.
For the novices, business riskscan either internal or external.An internal risk takes placeinside your business, for example,outdated salespractice ornon-compliant production processes. On the other hand, external risks occur outside of your business operations, such a a fluctuating economy and new industry standards and regulations.
While it is impossible toaccurately assess the magnitude of certain business risk, you can mitigate or lessen their impact by identifying the circumstances which can affect your finances and operations the worst.
To give you more insight, here are the key takeaways of the infographic from Bizprac, which details the ten ways your business could be at risk:
- Natural disasters
- Health and safety risks
- Non-compliance with regulations
- Regulatory and government policy changes
- Security risks
- Cyber risks
- Economic and financial risks
- Loss of competitive advantage
- Utilities and services
Learn more about how your business could be facing these risks by checking out the full infographic below.