1. Have a strategic plan that includes risk assessment
This needs to be in place when starting the business. What equipment and assets will you require to achieve the objectives towards your dream? Resources will be required – financial resources, human capital and certain assets depending on the kind of business you are in.
When you set up your business, there are certain risks involved with all these aspects, because you will have contractual relationships with the stakeholders – be it employees, the people you are supplying or your suppliers. Map them and find out what legal obligations you have to them, to make sure you fulfill them and avoid financial loss.
2. Insure your business
Certain events can happen suddenly and may put you out of business forever. If the assets you have bought for the business got damaged in any way, you would suffer financial loss, which may affect your progression in business.
3. Keep accurate records and back them up
Keep good records, for example in terms of stock, asset management, staff files with references in them, photographs and identity card numbers. Do proper stock management and properly maintain your books of account.
4. Keep your ears to the ground and read a lot
The risks that are going to affect you are not only within your company, and not only within your industry. There are other external factors that may affect you. For example, if there are political changes or issues, how will they impact on your business?
5. Protect your data
Because of technological innovation, we are highly connected. Does your business rely a lot on technology? Your data can be corrupted and affect your business. Ensure that you have employed enough security measures to prevent cyber theft.
6. Recruitment
Get two to three references for anyone you are employing. Do background checks, which ensure that the person was not a crook wherever they were and you know their background, so that they do not destroy your business, affect its continuity or affect your branding. You also do not want people who will over promise and under deliver, because it will reflect badly on your business.
7. Read the fine print
If you decide to take insurance, there are things written in small print, such as the warranty and scope of cover. For instance, you can decide to get a fire policy or no risk cover but find that it does not cover you because your kind of business uses hazardous goods or flammable items.
8. Have a proper business structure
Even if it is a small business, your dream will be executed by other people. Be clear on who does what in your business. As your business grows, the structure also grows and that means there may be some operational risks.