People put a lot of time and effort into their businesses, especially independent entrepreneurs who started it from scratch. After a while, they almost become like a pet; something that their owners care about deeply and would do anything to protect.
Here’s the problem, there’s every chance your business could be hit by the proverbial bus, just like your pet, and that could spell disaster. It pays, therefore, to be a little paranoid and to do everything you can to avoid disaster in your business. This is some helpful business advice if you’re an entrepreneur seeking to be prepared for success and avoid possible failure.
Diversify Your Sources Of Income
Markets are born and markets die: it’s a fact of life. Once upon a time the wealthy demanded horses in enormous numbers as a means of personal transportation. Then motor vehicles can along and the horse and cart industry was destroyed overnight.
The same can happen today. One minute you’re running a blogging company, the next minute, writing robots, powered by artificial intelligence, render your business model obsolete. Due to the nature of innovation, you never quite know when disruption is going to happen. So it’s a good idea to diversify your business into new areas if you get a sneaking suspicion your old business model might go out of date.
Consider All Possibilities
Being paranoid about the negative possibilities is usually a bad thing, but not if you’re an entrepreneur. In fact, it can be a rather useful tool. Considering all possibilities gets you asking “what if” questions. What if, for example, all the power suddenly went out? Are my prices are too high? Will somebody attack my brand?
Fortunately, there are all sorts of ways you can remedy these problems. If for instance, your business relies on servers to operate, or you need machinery running 24 hours a day, a power cut is a disaster. But some companies, including Riello, offer solutions, like so-called “uninterruptable power supplies” meaning that your business can stay online, no matter what disaster strikes.
Don’t fear a social media backlash against your brand, there are people you can hire to manage your PR or intervene to limit damage if your company gets negative press.
Build Solutions To Problems Before They Exist
Business gurus will often say that it’s important to think one or two steps ahead. When it comes to disaster readiness, it’s a much better idea to think miles ahead.
For instance, if you run a restaurant business that depends on one or two suppliers, it’s a good idea to think through what you might do, should one of those suppliers go out of business. Having a written plan and a backup supplier option means that you can continue to serve customers without a break, even if one of your major partners goes out of business.
Another approach is to put yourself in the shoes of all the people you employ. Think about how your business would function if one of them were to suddenly leave. Create a list of all the key players in your company – the people you can’t afford to lose – and create a backup plan if they decide to suddenly bail on you.