Low-Cost Risk Analysis for Entrepreneurs
Risk never lies in the obvious places. As an entrepreneur, you might not yet have the time or money to conduct extensive market research to help mitigate your risks. It’s OK to take a different approach.
Here are a few ideas to help you navigate and anticipate the risks to look out for as your business grows:
•Think through the downside of your decisions. This can be easy to figure out by comparing your business model to one that is already out there. Look at the decisions made by businesses using your model. Try to stay detached and objective in your comparisons.
•Be deliberate about modeling your business after one that’s growing. There are very few new things in our world, and modeling your business after one with steady growth can help you avoid the pitfalls of other business models.
•Watch for the challenges that come with fast growth. Often there is more risk in a business that is growing quickly than a business that it growing slowly. It is much harder to manage a fast-growing business. It can even be hard to imagine how large the business might become and build the business accordingly.
•Have the right people in place. Make sure your staff are well-trained and ready for what might be thrown their way. The risk is not being able to predict the outcomes.
The best risk-assessment tool for entrepreneurs is having people in your organization or “by your side” with a variety of backgrounds who can help you with business analyst. Having someone help you understand what might trip you up as the business speeds ahead can be invaluable.
If you’d like a partner in assessing your risks and some guidance on gathering your all-star team, I’d be glad to talk with you. To ask questions or make an appointment for a complementary initial session, call 804.288.0099 or 804.869.5403.