MANAGE SMALL BUSINESS RISK WITH THESE 4 STRATEGIES

• Running a small business involves risk every business faces risks associated with changing economic conditions, competition or other market forces
• These risks can have irreparable effects on a small size organization no matter how much preparation, education and experience a small business owner has in their respective field
• Internal and external factors can quickly damage a hard-earned reputation or hurt a business's finances
• Almost all types of risk have the ability to cause severe damage to a company's financial standing or reputation
• Risk mitigation strategy


  A plan that can minimize the impact of potential risks
• Mitigating risk in a small business requires a significant amount of prep work but done thoroughly it has the potential to save your business when things go awry
• There's no cookie-cutter approach to risk that works for every organization
• Strategies to avoid common small business risks

  • Managing financial risk
  • Mitigating reputational risk
  • Protecting against cyber attacks
  • Having backup plans
• Managing financial risk


  Keeping tabs on cash flow, working with an accountant, and regularly calculating financial standing
• The number one reason small businesses fail is attributed to cash flow problems
• Mitigating reputational risk


  Monitoring and responding to online reviews, owning the dialogue surrounding brand image
• 91% of consumers between 18 and 34 trust online reviews as much as personal recommendations
• Protecting against cyber attacks


  Creating a cyber security policy, ensuring secure network infrastructure, considering cyber liability insurance
• 6 in 10 small businesses don't have a digital defense plan in place
• Having backup plans


  Developing alternative strategies for marketing, advertising, and other areas prone to unexpected setbacks
• Risk is inherent in any type of business but it can be managed using risk management strategies