1. 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.
2. Have a professional analyze ‘risks’ for you 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.
3. 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.
4. Take steps to prevent anticipated risks
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).
5. Absorb a portion of your earnings as additional capital
The net income (earnings minus all the expenses and costs including employee salary, taxes, rent, etc.) arising from your business is definitely the fruits of your labor. This is the part of the income that will become yours – an amount that you can withdraw or personal use. However, there are times when an entrepreneur refuses to make a withdrawal (or refuses to make a full withdrawal). This is because they return the net income to the business as‘additional investment’. This is how businesses grow.
6. Make a proposal to financial firms
Having your business absorb a portion of your net income is one way to grow your business. But there is another method – borrow additional investment from lending firms. This is a good choice to make if you need a big amount of money. And if your business is corporation in structure (as registered legally), this is a safer choice.
7. Think of additional products/services you can offer
Another way to grow your business is to offer more services/products than you already do. If you are selling computers for example, you can expand your business by offering other electronic products as well (ex. Digital cameras, MP3 players, etc.). Ideally, your new products should still be somewhat related in nature to your current products. If you want to offer a completely new set of products (ex. You are selling computers and you want to start selling beauty products), it is advisable that you open a separate online store for the new products.
8. Increase your scope of suppliers
As much as you want to be loyal to your supplier/s, it is not how business really goes (unless you signed an exclusivity contract with your supplier). You should still keep your eyes open for the possibility of acquiring new suppliers. Always keep searching. Why? Because you might find suppliers that offer lower prices than your current suppliers. Acquiring merchandise at a lower price means higher income for you. Of course, there are other things to consider such as quality. Ask questions like “though this supplier is cheaper, is his products the same if not better in quality?”
9. Increase your scope of target customers
Simply put, you should offer products/services that also cater to other demographics. If you are currently offering products for women for example, maybe you should also start offering products for men as well. Also, if you are currently selling to the US market only, maybe you can think of ways on how to extend your services globally. This is a good way to expand your business if you started with a rather limited scope of target customers. Of course, expansion is going to cost more money. Make sure that you calculated for the costs before making your move. Also, expanding your business is like opening a new business. This means that you will need to do another Feasibility Study before going ahead with the plan. With a Feasibility Study, your plans of expansion will surely take a better path.
10. Increase your scope of advertisement
Doing advertisement is costly. This is why newly opened businesses often limit the scope of their advertisement in order to save on costs (ex. Business chose to advertise via the net only and refused to advertise via Television shows because of the costs). But once your business has become more financially stable, you might want to start increasing your scope of advertisement in order to invite more customers. And if you have so far used only free advertisement tools, maybe you can start using paid advertisement tools (note: Facebook for example offers free and paid advertisement tools. Of course, the paid service is more effective and covers a wider scope.). Have a wonderful day.
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?
2. Have a professional analyze ‘risks’ for you 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.
3. 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.
4. Take steps to prevent anticipated risks
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).
5. Absorb a portion of your earnings as additional capital
The net income (earnings minus all the expenses and costs including employee salary, taxes, rent, etc.) arising from your business is definitely the fruits of your labor. This is the part of the income that will become yours – an amount that you can withdraw or personal use. However, there are times when an entrepreneur refuses to make a withdrawal (or refuses to make a full withdrawal). This is because they return the net income to the business as‘additional investment’. This is how businesses grow.
6. Make a proposal to financial firms
Having your business absorb a portion of your net income is one way to grow your business. But there is another method – borrow additional investment from lending firms. This is a good choice to make if you need a big amount of money. And if your business is corporation in structure (as registered legally), this is a safer choice.
7. Think of additional products/services you can offer
Another way to grow your business is to offer more services/products than you already do. If you are selling computers for example, you can expand your business by offering other electronic products as well (ex. Digital cameras, MP3 players, etc.). Ideally, your new products should still be somewhat related in nature to your current products. If you want to offer a completely new set of products (ex. You are selling computers and you want to start selling beauty products), it is advisable that you open a separate online store for the new products.
8. Increase your scope of suppliers
As much as you want to be loyal to your supplier/s, it is not how business really goes (unless you signed an exclusivity contract with your supplier). You should still keep your eyes open for the possibility of acquiring new suppliers. Always keep searching. Why? Because you might find suppliers that offer lower prices than your current suppliers. Acquiring merchandise at a lower price means higher income for you. Of course, there are other things to consider such as quality. Ask questions like “though this supplier is cheaper, is his products the same if not better in quality?”
9. Increase your scope of target customers
Simply put, you should offer products/services that also cater to other demographics. If you are currently offering products for women for example, maybe you should also start offering products for men as well. Also, if you are currently selling to the US market only, maybe you can think of ways on how to extend your services globally. This is a good way to expand your business if you started with a rather limited scope of target customers. Of course, expansion is going to cost more money. Make sure that you calculated for the costs before making your move. Also, expanding your business is like opening a new business. This means that you will need to do another Feasibility Study before going ahead with the plan. With a Feasibility Study, your plans of expansion will surely take a better path.
10. Increase your scope of advertisement
Doing advertisement is costly. This is why newly opened businesses often limit the scope of their advertisement in order to save on costs (ex. Business chose to advertise via the net only and refused to advertise via Television shows because of the costs). But once your business has become more financially stable, you might want to start increasing your scope of advertisement in order to invite more customers. And if you have so far used only free advertisement tools, maybe you can start using paid advertisement tools (note: Facebook for example offers free and paid advertisement tools. Of course, the paid service is more effective and covers a wider scope.). Have a wonderful day.
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