Your business is your livelihood. Without it, you’ll have no income and nothing to show for your hard work. Consider what would happen if your customers all suddenly disappeared? Or you were hit with a massive, unexpected bill? What would happen to your business then?
Being reactive to situations will only help you so far. You need to be proactive with your business to ensure you’re preventing future problems. Here are six things you can do today to help you future proof your business.
A backup fund is essential against any unexpected costs or when sales are poor one month. In theory you should be saving at least three month’s worth of wages for when your sales are poor.
One of the first things that business leaders reduce is marketing activity, especially when times are good and there’s no more work capacity. However, it’s always better to turn potential clients away than to desperately search for them if you’ve lost numerous customers quickly.
Key employees are the life-blood of your business. You might have one employee who has a specific skill you can’t function without. Don’t let that person be the only one. Ensure you are cross training your staff so there’s an overlap of skills and knowledge. Otherwise, if that one key worker is suddenly unavailable, you’re missing a huge skill that will take a long time to replace and it will cost you.
A good business is one that runs automatically. Process one leads to process two, which leads to process three, etc.. And everyone in the business knows those processes. Therefore, if someone has to leave for an emergency or is interrupted, another person can quickly step in to finish off without pause. A clear set of processes reduces the time to complete tasks and reduces costs.
Another key aspect is to ensure you regularly review your products/services/suppliers/processes. Look for a part of your business that costs you money and doesn’t add value. Eliminate those from your business and look for alternatives, if applicable. Sometimes, you might be able to renegotiate rates with your suppliers, but be prepared to switch.
There are numerous ways a claim could weaken your business financially. The risk just isn’t worth it. That’s why you need to speak to a professional insurance expert to ensure you are covered for anything and everything. You might not ever need to use your policy, but it’s best to have and not need, than to need and not have.
How do you ensure the future of your business? What tips do you have?
Let us know in the comments below.