The last eighteen months have made us all a lot more risk averse than perhaps we used to be. We have all seen just how disruptive an unexpected event can be.
Even if we hope to never again see something as cataclysmic as the Coronavirus pandemic again in our lifetimes, it was a severe demonstration of the need to think about how we need to protect our businesses against risk.
Sadly many businesses didn’t survive the pandemic.
Whilst it wasn’t in everyone’s control, nobody wants to be put in that situation if there is something they can do to prevent it.
With the rise of the Delta variant around the world, shocking weather events and an unstable market, we can see that there will be more challenges to come in the months ahead.
It’s therefore more essential than ever that you future-proof your business so that you’re ready for whatever may come its way in 2024.
Here are a few ways that your business can protect itself against risk.
Keep An Eye On Your Debts
This is especially important for any new businesses that are just starting out. Investments may come with strings attached, and although taking out loans during your launch may help you get to where you need to be, you cannot afford to forget about them.
Use this time to look at any outstanding debts that you have and look at their interest rates.
You don’t want to find yourself in a position where plans for the future could be compromised by late payments or bad credit.
If you’re struggling to stay on top of what you owe, then speak to a financial advisor who can ensure that you don’t get too out of your depth.
Make Smart Investments
On the other end of the spectrum, having money to invest is a blessing but a bad investment could leave you worse off than when you started.
You could also be finding that you are constantly at the back of the queue when it comes to suppliers, trying to compete with bigger companies and forced to pay more than you can afford.
If you want to make sure that you are getting the best prices with minimal risk, then consider joining a GPO.
A Group Purchase Organization creates greater purchasing power by pooling the purchase among a group of buyers.
You can find out more about how they work and whether they would be a good fit for your business by visiting Procure Analytics, which has over 850 members and a 99% retention rate.
Their guide to GPOs will give you a fundamental understand of how it works and how it could benefit your business.
Bring Experts On Board
Part of minimizing risk is understand the dangers that you might face. With the marketplace as chaotic as it is, you can’t afford to take the chance that you have missed something crucial.
Take cybersecurity, for example. You cannot have missed the stories about the shocking number of ransomware incidents all over the world.
This is why you should considering talking to a cybersecurity expert about how you can better protect your information and your finances, and how to educate your employees.
And what about legal issues? You don’t want to be rushing to find an attorney after you have found yourself in a bind.
If you are considering expanding into a new territory or location, bring a business attorney on board to talk you through any issues that you might face and how you can avoid them.
Finally, we all saw how many businesses were forced to close during the pandemic. Find an accountant that you can trust to make sure that you are doing everything that you can to minimize financial risk.
You can’t expect to be an expert in every area, so if your knowledge is thin it’s essential that you get advice from someone who knows the field inside out.
By implementing the core 3 steps listed above, you can help to ensure your company is prepared for some of the common issues that businesses face in today’s landscape.
If anything as unprecedent as Coronavirus happens again, you will also know how to react.
So, be sure to make smart financial decisions, don’t let any debts build up too much and rely on expert advice whenever you need it.
With the right plan in place, you can get your business off to a flying start in 2022.
