REDUCING RISK IN YOUR BUSINESS
Have you been playing the game of trial and error in your business? Is your business strategy well planned… or is it more like pinning the tail on the donkey?
When I was growing up, we used to play a game called “Pin the Tail on the Donkey.” In this game, the player would get blindfolded and his friends would turn him round and round. After that, he’s given a paper tail and his job was to find a picture of the donkey and pin the tail on the donkey. You can imagine how difficult this is and how much trial and error the player had to go through. It’s a fun game to play at a party, but it’s not a very fun game to play in business.
My question to you is: Have you been playing the game of trial and error in your business? Is your business strategy well planned… or is it more like pinning the tail on the donkey?
5 Questions to Evaluate your Business Risk
- Is your business highly dependent on you?
- Are you highly dependent on one or two major customers or products?
- Are your contracts short term?
- Does your knowledge of the market and the competitors need to be improved?
- Does your business planning seem “spontaneous” instead of long term and strategic?
If you answered YES to any of these questions, your business is at RISK!! If you plan to sell your business or get investors in, any of these will cause them to doubt your sustainability. If you plan to leave your business in the hands of professionals, get ready for a scary ride!
The definition of a proper business is A Commercial Profitable Enterprise that Works without YOU. Simply put, the value of your business increases if you have high growth and low risk. Your challenge as a business owner is to balance the two sides.
8 Tips to Reducing Business Risk
- Test and measure every marketing activity. Make sure you’re not wasting time and money in unproductive campaigns.
- Build a productive team. Align your team with the vision and develop them to be able to be as good as you are. If they don’t GROW, you can’t GO!
- Negotiate longer contracts
- Balance your customer mix. Don’t put all the eggs in 1-2 customers
- Balance your product mix. Don’t put all your hopes in 1-2 products
- Find your uniqueness. Make sure it’s impactful and hard to copy
- Know your market, your economy and your competitors. Make a regular effort to evaluate them.
- Involve your team in business planning session and have regular reviews.
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With 17 years of international experience, Cynthia understands western and eastern mindset in her work with companies to integrate the two in a solid team. She started and owns the ActionCOACH business in Bellezza. her personal vision is to Create a World where People Contribute at their very BEST and that reaches to business and personal life. Her professional experience includes sales & marketing and a successful business turn around projects in Singapore & Indonesia. Cynthia is a Master NLP Practitioner and a CCF Certified Coach. She has been recognized and awarded in a Master NLP Practitioner and CCF Certified Coach. She has been recognized and awarded in the Action community and is ranked #63 in the Top 100 Coaches of the World.
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