Analyse the risks

entrepreneur risk

No one can completely eliminate risk. The best you can do is manage it.

Step one:         What are the risks?

Your customer doesn’t pay? Your company doesn’t deliver? Lose a key employee? Identify the events that can kill your business.

Step two:        What do we do to mitigate the risks?

For each critical risk, have an action plan to minimise the odds of the risk materializing, ie: give stock options to your key employees.

Step three:      What do we do if the worst scenario happens?

Imagine the worst case scenario unfolding. Have a plan for dealing with it. Ie: If your customer doesn’t pay you’ll need to cut costs. Prepare a cost-cutting schedule, consult with labour lawyers re the retrenchment process, pick a a final deadline.

Not only will you be prepared, but the fear of the worst case will disappear once you’ve visualized the process and realised the reality is not as bad as your imagination.

Step four:        Head down, concentrate on what you can influence, ignore the rest.

Once you’ve made your plans, there’s nothing to do but keep moving forward. Worrying about things outside of your control achieves nothing except stress and slowing you down.

When in doubt, keep moving.

Sign up for Daily Blog

Enter your email address to subscribe to this daily blog.