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How to REDUCE RISK In Business
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There are a lot of risks in business. It’s not just in your finances, but your operations, strategy, compliance, and reputation too! It can be overwhelming, but we aren’t powerless. In the last episode, I talked about what risk is in business. Today I want to share the process I take clients through when we’re putting strategies in place to reduce or manage risk.
The Three Pillars of a Risk Mitigation Strategy:
1. Business Structure: The first step for any risk management plan is having the right business structure. You want to ensure the structure you choose aligns with your industry and offers asset protection, especially in high-risk sectors.
2. Insurance: The second pillar is having the right insurance coverage tailored to your business needs. You don’t want to pick insurance online because you wont really know what you’re getting. Consult with a broker, they can explain what’s included and excluded so you can be confident you’ve got the proper protection in place.
3. Legal Documents: Unsurprisingly, the final pillar of a good risk mitigation plan is having solid legal documents. Remember no two businesses are the same. So your legal documents need to be suited for your industry, and tailored to your business. They need to comply with your obligations under consumer law and any other professional areas that may govern your business.
Then we look at financial risk. Your legal documents should be crystal clear about what services/products you are providing, what you aren’t providing, and how you’re delivering it. You also want to include when and how you’ll be paid, so you can get paid on time, every time.
Risk management is a crucial aspect that can make or break a company's success. If you proactively address these three pillars, you can safeguard your business and face challenges with confidence. I hope this episode serves as a guide to this process and sets you on the path to long-term success.
LINKS:
Check Your Legals with the Essential Legal Checklist here
Check out my Getting Paid Made Easy course here
Website:tmsolicitor.com.au
Instagram:https://www.instagram.com/tmsolicitor/
Book a Strategy Session with me here
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