
Business is about taking risks to earn a profit. However, there are some risks that can creep up on you slowly or swiftly that can either destroy or greatly damage your business.
Health Issues:
As we get older, health issues become a larger risk. Common and sudden issues can include heart attacks and strokes. The recovery time can be long, and your business may not survive if you are not there to tend to it. Make sure to keep yourself healthy, work out and eat right.
Market & Technology Changes:
The pace of change has been dramatic over the recent past and will likely continue. Sometimes the changes may be swift and if you do not adapt then you may be out of business. Trends over the past few years have been to use technology more and more to deliver services. Using the right technology will help you to survive and prosper. Keep abreast of technology changes within your industry and outside of your industry, and do not be hesitant to adopt them.
Divorce:
Due to no fault divorce laws, a spouse doesn’t need a reason to end a marriage. However, if you have a successful business, especially one that is worth a lot, then your spouse may be entitled to a large percentage of the value of your business. The legal process is very time-consuming and can drain your resources, both financially and emotionally. Maintain a healthy marriage and choose wisely to minimize the likelihood of divorce.
Dependence Upon One Platform/Customer/Referral Source:
This risk appears quite frequently when your business depends on selling online, such as through Amazon or eBay. At any time, the platform can choose to limit sales of your product or suspend your account for any number of reasons even if you didn’t do anything wrong. Be aware of this and use several platforms to mitigate this risk. Also, if all or most of your income is from one customer or referral source, then you need to obtain additional customers and referral sources.
If you like what you just read, then don’t hesitate to forward/share with your friends, comment below, and/or click like on LinkedIn!
Make sure to subscribe to our weekly emails to receive practical business, financial and tax strategies! Sign Up Now!