How To Manage Risk In Your Small Business

Every business comes with some risk. You can’t be certain that your idea will take off or that the new guy you just hired to do sales will come through with the goods. Uncertainty and risk go hand in hand and, if we’re being honest with ourselves, that is what makes being an entrepreneur so exciting.

Managing risk is something we all do every day from choosing to cross at a pedestrian crossing to hanging up the phone to a scammer.

But when you start up a new business how do you know what the risks are?

And how do you manage them?

Security Risks

Your security as a small business is paramount. Whether you are worried about DDoS attacks or concerned that a discontented employee will spill the details of your new venture to a competitor, you need to be able to secure your assets.

You should start by hiring an IT company to ensure that your website and any online servers you use are completely secure. Often this is simply a case of installing the right firewalls and keeping an eye out for dodgy activity but it is worth getting professional help.

A good IT company will be able to provide reassurance as well as ensure that your site is always operating at peak.

If you have physical premises, you should also make sure that they are secure. While you probably don’t need armed guards at the door, getting CCTV could be a good idea. You should also make sure that only senior staff are key holders and run through security procedures with all your employees.

Hiring the Right People

One of the main risks you take as an entrepreneur is trusting others to execute your vision. When you hire someone new, you have to trust that they are not only capable and willing to do the job but that they will add value to your company.

Hiring the right person comes down to two main things: knowing what you want from an employee and finding the person who fits that criteria.

To minimize the risk of getting the wrong person, make sure that you are clear in the job description you advertise but also be willing to let someone learn. There is a lot to be said for hiring for potential and, if it really isn’t working, you can still let someone go during a trial period.

Choosing Premises

Another risk you take without realizing it is choosing the premises you work from. Your office or store says a lot about your business and everything from where it is to how it is fitted can tell your clients all they need to know. The main risk here is that you can’t afford the premises that will make the best impression or you invest in premises that put your clients off.

Making sensible decisions in the business world often comes down to gut instinct. There will always be risks and you can evaluate as best you can but, in the end, it comes down to the gamble. But the more you know, the better your gamble will be.

© New To HR