Posts Tagged ‘risk’

Identify the Worst Case Scenario to Stop It

We all hate to consider what could go wrong simply because we often view it as negative thinking. It can be negative but doesn’t need to be that way.

A Little Preventive Maintenance

Think for a moment about your car. If you are wise you have routine maintenance performed. Of course some of that is Read the rest of this entry »

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Data Security

When it comes to data security you’ve probably heard the adage that every computer hard drive will eventually fail. Now, you may say, “Wait a minute. I’ve owned several computers and never had a hard drive fail.” That, however, misses the point, which is Read the rest of this entry »

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Testing Your Business Idea

For years I’ve loved working with start-ups and early stage businesses. There are numerous reasons, including the uncertainty and the need to be able make quick changes as the business begins to unfold. You might wonder why I would like uncertainty. Well, I like it because it keeps challenging me to grow and learn. If you are starting a business or even trying to grow a relatively new one, you will find it more enjoyable and improve your likelihood of success if you learn to like or even love uncertainty and change and the challenges both present. Whether a start-up or simply a relatively new business, you will need ways for testing your business idea.

The Disadvantage That Once Existed

It was not that long ago that you had to invest a lot of time and money simply to see if Read the rest of this entry »

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Change or Become Irrelevant

What do all of the following have in common? Hudson, Henry J., Crossley, Packard, Studebaker, Oldsmobile, Plymouth. They are all automobile brands that are no longer produced. At one time some of these were significant players in the automobile industry. So what happened?

Relevance

When these companies were successful they were relevant to the auto world. At one time some were highly successful. Although they all ended their run at different times, they all have something in common. They lost their relevance in the sense that people stopped desiring these vehicles. But why did this occur?

Change

These companies failed to sufficiently Read the rest of this entry »

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Taking Risks is Essential to Business

The unknown can scare anyone, and the more unknown something is the more it can scare us into not acting.

Nothing Ventured, Nothing Gained

All of us have probably heard numerous times, “Nothing ventured, nothing gained.” I have no idea where this statement originated, but it is certainly true. Oh, I suppose we do occasionally experience an unexpected gain when we have done nothing to cause it, but that is the exception. Read the rest of this entry »

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Diversify to Lower Risk

Your business may be performing well, but there may be a hidden risk you haven’t considered.

Changing Times

In 1964 Bob Dylan recorded a song called “The Times They Are A-Changin”, and yes, changing really was misspelled in the title. Forget about the words to the song as it is the title that matters here. Nothing stands still. Over time everything changes. That is a vital fact to grasp if your business is to survive.

But We Have a Great Product

While your product may be great today, will it Read the rest of this entry »

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When an Asset is Not an Asset

When is an asset not an asset? Let’s start out with some basics before we get into the meat of this article.

Asset Defined

According to Merriamwebster.com one of the definitions of an asset is an item of value owned or item(s) on a balance sheet showing the book value of property owned. For accounting purposes this is a good working definition. It would include such things as cash, receivables, inventory, land and building, equipment, and pre-paid expenses. There are other things that can be classified as an asset, but this list does not need to be all inclusive for the purpose of this blog.

How Are Assets Used?

Assets are used to Read the rest of this entry »

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The Risks of Suppliers

Every company has vulnerabilities. For example, if you only have one customer or client and you lose them, you are out of business unless you can find at least one new customer. The more common scenario is when a company has multiple customers but one or two customers represent such a significant portion of their business that the loss any of them would considerably alter the picture. This change could be forcing a closure, cutbacks in employees, or other forms of financial belt tightening. Probably you are aware of this risk and are hopefully doing something to mitigate it.

There is another risk that many companies overlook–risks of suppliers.

Dependency

You have undoubtedly heard the expression, Read the rest of this entry »

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