Not taking risk seriously can stop your startup in its tracks.
According to the U.S. Bureau of Labor Statistics, the chance a business will make it through the first year is 80 percent. As time goes on, the likelihood of failure increases. Less than a third will still be open after 10 years.
How many of these failures could have been avoided with proper risk planning? As a startup owner, are you aware of how many potential pitfalls may have been overlooked?
Risk comes in many forms. Some you can prepare for, some you can’t. Not all risk is bad, though, because without being brave enough to take the plunge on occasion, you might never grow.
Being a small business owner is as exciting as it is scary, and for good reason – there’s so much riding on whether or not your startup will be a success. With the hard work and dedication that goes into getting a business off the ground, protecting it at all costs should be high on your (and any other entrepreneur’s) list of priorities.
So why, then, is risk management often an afterthought, if it’s even thought about at all? An “it’ll never happen to me” attitude leaves you vulnerable, yet thousands of startups fail because they’ve adopted this mindset.
Small business, big risks
Most startup owners understand there are risks associated with running a business. But many don’t consider the full scope of issues they might be up against. Some might even feel their business model is so low risk it doesn’t need measures to protect it.
The problem is, risk doesn’t care how big or small your business is. A sole proprietor can face the same problems as a large corporation, but will not have as much clout when it comes to fighting a court case, will be less able to afford replacement business-critical equipment, and will have fewer resources to quickly recover from a PR disaster.
No matter how careful you are, at some point, something will happen that puts your startup in jeopardy. Identifying and understanding the risks you face means putting together a robust risk management and recovery plan first. This helps minimize the impact of these things so your startup can get back on its feet in no time.
By failing to prepare, you’re preparing to fail
Starting and running a business isn’t easy, which is why it’s so important to do everything you can to protect it. Risk planning and management can be daunting but it doesn’t have to be.
To help you get started, InsuranceBee has released “The big guide to small business risk.” It’s a deep dive into the different types of risks startups and SMBs face, and is packed with practical advice on how to meet the challenges head-on.
With expert insight from contributors spanning all aspects of risk management, the comprehensive guide covers how to prevent, protect against and recover from incidents that could impact any small business.
Find out more by downloading your free copy today:
Content sponsored by InsuranceBee