Most small business owners are born optimists. After all, why take the plunge unless you’re confident you can stay afloat? But positive thinking can only take you so far. To succeed in business and stay on course, you also need to think about what could possibly go wrong and seek the help of an expert.
All business involves risk. From natural disasters, such as fire and flood, to theft, or building works on your doorstep that disrupt your trade. It’s impossible to predict, let alone prevent, all future risks. But there are 4 key steps to take to reduce the impact on your business. Do it right and you won’t just survive, you could thrive.
1. Identify your risks.
The first thing to do is to compile a list of risks you could potentially face. It would be helpful at this point to tap into the experience of an insurance broker, a business mentor or your business networks. The government also has an online guide to help you assess your business risks, which you will find, here.
Every business is different and so are the risks they face. For example, if you run a retail food outlet and rely on refrigeration, then a power outage could result in stock losses. Worse still, your customers could suffer from food poisoning. Or if you run an online business and your internet connection is down for hours or days, you risk losing business and customer goodwill.
As well as physical risk to your business property, employees or clients, think about potential disruption to the market you operate in and less tangible things, such as risks to your business reputation.
An insurance broker can work with you, to help identify your insurable risks. With this advice you can then make an informed decision to find the right cover to protect your business against the unexpected.