Running a small business carries with it a lot of risks and rewards. The best way to mitigate those risks is by identifying what they are so you can tackle them head-on. An infographic by bizprac points out 10 ways your business could be at risk — so take a look at each below.
In the bizprac infographic titled, “10 Ways Your Business Could be at Risk,” the company says, “There are various factors that could have adverse effects on a business’ profitability, security, and stability and it should be the goal of every business owner to identify these risks.”
One way to make the identification of said risk easier it to have a risk management system in place. Whether you are embarking on a new venture or you have an established business, risk management is essential to ensure the long-term viability of your enterprise.
As part of your overall plan, risk management must be included in order to understand the potential risks your business might/will eventually face. When you understand what the risks are, you give your business the best chance to succeed.
Top Small Business Risks
The 2018 data (PDF) by the Small Business Administration (SBA) has some sobering statistics about the success and failure rates of new startups.
According to the SBA, about half of all establishments survive five years or longer and around one-third of establishments survive 10 years. But the good news is the data doesn’t deter the entrepreneurial spirit of small business owners.
The fact that hundreds of thousands of small businesses are created each year, and around 30 million of them employ 47.8% of all US workers is proof of their perseverance.
They learn from their mistakes, plan better, manage their risks and eventually become one of those small businesses celebrating their 10+ year anniversary.
Some of the Ways Your Business Could be at Risk
Economic and financial risks can be initiated by many different factors. And many of these factors are in many cases out of your control. A slow economy, high unemployment rate, and low consumer spending are just some examples.
The infographic points out everyone suffers during an economic downturn, but not everyone survives.
Enduring and surviving a slow economy requires, according to the company, identifying and analyzing the risks and its impact, evaluating it, and finally treating it. At the same time, you should continue to develop your risk management plan.
Another threat which has become a persistent problem in today’s digital world is cyber risk. No matter how small your digital presence is, you have to implement a robust security protocol with strict governance for your organization.
This not only protects the data of your company but that of your customers.
Losing your competitive advantage is also a risk. With so many new businesses being established every year, you can’t lose focus on the needs of your customers.
This requires staying up to date with the latest developments in your industry as well as keeping tabs of your competition by noting their strengths and weaknesses.
Some of the other risks in the infographic include natural disasters, staffing, utilities and services and more. Take a look at the bizprac infographic below to see the rest of the ways your business could be at risk.
This article, “The 10 Biggest Potential Risks to Address in your Small Business (INFOGRAPHIC)” was first published on Small Business Trends