All businesses, whether small, medium, or large are always at risk to certain elements. It’s all about how you manage and hedge the risk.
Look at the coronavirus pandemic as an example. So many businesses unfortunately ended up filing for bankruptcy.
However, many managed to keep their business safe by varying means. One was flexible working. Those companies who had instigated flexible working in their workplace before the virus hit were more able to rid of the problem out as people could work from home quite easily.
Those that didn’t have to rush. So, how can you keep your business safe going forward?
Each business differs depending on the industry but here are some top tips to help you succeed.
Keep Track Of The Finances
For tax purposes, you always need to ensure you have a solid grip on your finances. It might sound obvious, but when businesses do well and take off the numbers start adding up.
The income bumps up but as does the expenditure. If you don’t keep a grip of exactly what’s coming in and going out you can find yourself in deep water. All finances too.
Think about bank reconciliation, about how you’re going to account for everything, and how you’re going to file your tax return. When you employ people, it’ll get even more complicated.
You might be great with numbers and be able to do it all yourself. However, the longer you spend with the figures, the less time you spend with your actual business.
And what fun is doing your finances when you enjoy working your small business? I know I dread getting ready for the accountant each year!
But the right software can help, as can actual accountants. Just keep track until you know what you want to do to keep your small business safe.And what fun is doing your finances when you enjoy working your small business? I know I dread getting ready for the accountant each year! #InspireToThrive Click To Tweet
Hedge The Risk to Keep Your Small Business Safe
Hedging risk is tough, no matter what industry you’re in. It’s all about taking calculated gambles. Risks that might pay off or not. But you need to have methods in place which can help you, and help ensure that you aren’t going to be stung.
For example, if your current method of selling seems to be on a downward trajectory, it might be time to sell on another platform to ensure you’ve got money coming in.
In the meantime, things might pick back up again but you’re hedging the risk by looking at other avenues. Always make sure your eggs aren’t all in one basket. Look at the pandemic.
Those who only sold their wares from a physical store would have been hit far harder than those selling from an online store too.For example, if your current method of selling seems to be on a downward trajectory, it might be time to sell on another platform to ensure you’ve got money coming in. #InspireToThrive Click To Tweet
Do Business Abroad and Keep Your Small Business Safe
Many businesses do business abroad. Many have recently branched into this to try and pull some extra sales in due to the problems faced by many businesses over the years. Doing business abroad is a great way to gain extra sales, especially if they’re slowing in your current marketplace.
However, it can be risky and you need to focus on keeping your business safe. For example, if you were going to do business in Japan you’d need to follow their strict etiquette rules.
Each place does business differently. If you go elsewhere, expecting things to be the same, you might end up blowing through money marketing with it having little impact.
A bit of research could have ensured the money went to the right place and really drove your sales through the roof. Be careful and ensure you know what you’re spending the money on to keep your small business safe.
If your business is all online be sure to have an excellent computer or a backup plan if it breaks down.
What are you doing today to keep your small business safe in these challenging times? I’d love to know more in the comments below.
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Wonderful post. I really enjoyed reading it. I think finance management is the key to the success of any business. Thanks for sharing
Thank you George. Yes, without finance a business cannot be really successful. Thanks for coming by and welcome to Inspire To Thrive 🙂
Being aware of how to do business abroad is key, Lisa. You note Japan which has strict business rules per etiquette. I learned during one of my trips to Bali how at least as of a decade ago – not that long, really – business had to be conducted in person, via a literal handshake to seal the deal. This was per custom for time share deals as Kelli and I explored this opportunity a bit but someone told us we needed to actually hop on board in person. We felt rushed and simply left the presentation LOL.
Hi Ryan, I bet you have learned about a lot of different cultures over the years traveling the globe! Very interesting about Japan. I would imagine that feeling of being rushed too. – Not a good feeling! Thanks for sharing that with us here Ryan. Enjoy your day down there in paradise. 🙂