Manage risk like an entrepreneur

50. Make a list of possible ‘risks'

Business does not always go according to plan.

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There are definitely going to be some obstacles and difficulties. But with careful planning, deliberation, and observation, you can come up with a list of possible risks. Try to think of possible problems that your business might face. Try to simulate situations in your head. What difficulties do you think will arise? With this kind of anticipation, you will be better equipped to face such problems.

51. Observe risks faced by competitors

Observe other businesses that offer similar products/services. Normally, these would be your competitors. Look at their history. What problems did they face? What risks did they have to deal with? What risks are they currently having difficulty with? And also, how did they solve the problems that they encountered? These will help you get an idea on how to deal with the risks that you will be facing. Let the experience of others guide you.

52. Have a professional analyze ‘risks' for you

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Risk analysis is a specific subject. There are professionals trained to do this kind of job. Normally, people with a Bachelor’s Degree in business and marketing related subjects have some kind of training in this area. Of course, it is not necessary for you to hire someone to do just this for you. Maybe the manager or one of the employees you hired can to this for you. If your business has not opened yet, make sure that you include ‘knowledge on risks’ as one of the requirements when hiring a manager for your business.

53. Make a game plan (solution) in advance

Once you have identified the possible risks, it is now time to formulate theoretical solutions. What will you do if any of those risks actually arise? Well, you should already have a game plan set in advance. You want to be prepared for any possible risks that might come your way.

54. Take steps to prevent anticipated risks

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You may already have a game plan on what to do if a risk comes your way. But there is a better solution - prevention. You should take real-time and actual steps that will prevent those risks from even arriving. As they say, prevention is better than cure (ex. If you anticipated that negative comments on your Facebook account will affect your business, then you should remove negative comments as soon as they are posted).