Running a business can be intensely rewarding, but it is by no means easy. There’s so much to keep on top of, especially when it comes to managing your own work-life balance and keeping your business running efficiently and safely. We look at some of the risks of doing business and potential ways to deal with them effectively.
Building a Business Takes Sacrifice
When you’re building a successful business, it can take a lot of work, much more than you might have envisaged. Many business owners give up a lot of their free time in order to keep the business going. A Gallup survey found that 39% of small business owners worked over 60 hours per week.
Hopefully, you will soon be in a position where you scale and expand the business and hire in people to take the pressure off you, getting some of your free time back.
Cybersecurity is Vital
One of the biggest threats to a business in the modern world is the threat of cyberattacks. Insurance firm Hiscox estimated that even a very small business could be facing costs of $25K for a simple data breach. Others have estimated this to be in the region of $200K. Data protection should be one of your top priorities.
Many small businesses that experience a cyber attack are at risk of going out of business. By taking steps to secure your IT systems, cloud computing, and training your employees, you are less at risk of malware and phishing scams.
You Need to Show Integrity at All Times
The respect of your customers and employees is vital to running a business. This means that you need to act with integrity and honesty at all times. The business press is littered with cautionary tales of companies that have not acted with the integrity they should have. Not only has it resulted in bad PR, but a direct impact on the bottom line too and leave you financially impacted.
The Buck Stops With You
In the course of doing business, the responsibility lies with you for many things. That means you have to make tough decisions when necessary. This can include deciding whether to hire or fire someone, making employee layoffs and restructures, or moving suppliers.
These types of things are never easy, but can’t be avoided. Some people are more comfortable with this than others.
It Can Feel Lonely
When you’re employed in a role, you have colleagues to confide in and managers on hand to reach out for help from. That’s not the case when you’re in charge. The dynamic between you and the rest of the team is much different. That’s why many business owners build up their own support networks outside of the office. This could consist of other business owners, mentors, or networking groups.
Running a business involves being responsible for everything from data protection to finance. There are risks to doing business that you have to take into account and deal with as part of your role.