Starting a new business is an exciting time, but it’s also one of the most stressful.
You need to make hundreds of decisions, and it can sometimes feel like you’re wading your way through an endless list of risks.
Of course, these risks can be anything from the obvious (like cash flow problems) to the so-called small risks, such as power cuts.
In today’s article, we look at some of the main risks you need to be aware of and how you can counteract them as a new business owner.
Data Security
In a world that is becoming increasingly digitalised, data security is an issue that can’t be overlooked.
As a new business owner, it’s important that you understand the implications of a data breach, the costs associated with it, and how it can be avoided.
Fortunately, there are ways that you can protect your data – such as investing in antivirus software and data encryption. You should also have a clear data security policy in place and ensure that all of your employees are aware of it.
Cash Flow
Cash flow is one of the biggest challenges businesses of all sizes face, but this is especially pertinent to new businesses, which often struggle to forecast the money coming in accurately and when.
To counteract this, it’s essential that you have a clear understanding of your financial position. This means looking at the money you owe and the money owed to you.
You should also make sure that you have a clear payment policy in place, and you should make sure that your invoices are sent out promptly.
Employment Law
If you’re going to hire staff, then you need to be aware of the various employment laws that are in place.
This is so that you can ensure you’re compliant with the relevant regulations and you don’t find yourself on the receiving end of a grievance from an employee or, worse, an employment tribunal.
It’s also important to note that employment law is constantly changing, so staying up-to-date with the latest news is essential.
Competition
The competition landscape is constantly changing, and it can be challenging to keep up if you’re a new business.
However, it’s important that you stay one step ahead of the competition and understand what they’re doing. This way, you can make sure that you’re offering something better and more competitive than they are.
Small Risks
Finally, don’t forget the so-called small risks.
For example, you need to make sure that you have the right insurance in place to cover you in the event of an accident or a crime, and you need to make sure that you have a backup plan in place for any technical failures or a natural disaster – the list can go on.
It’s easy to overlook these risks because they don’t seem as important as others we’ve discussed today. However, you need to make sure that you’re prepared for them, as you never know when they might come into play.
