Business is a risky business. The owner of a business constantly risks everything: invested funds, own resources, time and effort.
But a savvy entrepreneur knows that any situation can be, if not prevented, then its consequences can be corrected.
To think about what can prevent the development and prosperity of business is at the stage of a business plan. That is, before the business begins to operate.
Arina Barsukova, an expert on strategic business development, explains what risks are possible for any business, how to prevent them and what to do if it is impossible to prevent them.
All factors which in theory may threaten any business are divided into two large groups: controllable and uncontrollable risks.
Uncontrollable risks
- Economic, political and social environment: crises, devaluations, revolutions, foreign policy problems, etc.
- Natural disasters: tsunamis, hurricanes, avalanches, floods, etc.
- Currency risks: fall of the national currency exchange rate
- Taxation changes: changes in tax burden
- Changes in legislation: increase of administrative barriers, acceptance of new laws, negatively influencing business sphere.
- None of these factors can be influenced by business owner. No money, no connections, nothing will help. Therefore it is necessary to consider how to minimize the consequences in the event of any of these situations