3 hidden risks to avoid with your startup
There are a number of common, yet easily avoidable, mistakes that the average startup is likely to commit. Knowing these potential pitfalls can drastically reduce the negative impact that they can cause, and being aware of these risks is the first step to tackling them.
The consequences of accepting risk as an inherent part of the startup culture is a mistake in itself, and although you may not be able to counter every potential pitfall, the more prepared you are, the better your startup will be able to tackle them. Whether your startup is already up and running, or you’re in the planning stages of your new venture, these precautions may end up being the defining factor that ensures the success of your business goals.
Risk One: Lack of protection
Accidents happen, and the number of businesses without any level of protection when it comes to the fallout of an accident can be staggering. Most startups fail to factor in every single one of their ongoing costs, and this can end up costing you a lot more than you expected. If an employee or customer is hurt whilst interacting with your business, then you could face costly legal proceedings, which is why it’s vital that you have the best general liability insurance possible. Make sure that you have the right paperwork in place, and the best in commercial general liability insurance and your business will be much more protected, and the chances of unexpected risk are drastically reduced.
Risk Two: Online Security
In a hyper-connected world, your startup is going to inevitably benefit from the ability to communicate on a global scale. The technological potential of the internet has been a massive advantage to the business world, and your startup is no different. However, there are also some serious risks to consider when you take your business into the digital domain, and cybersecurity is an area where your startup is going to want to be very strong indeed.
There are some basic online security measures that every business should be using, with password management and firewall protection being key. Ensure that you have the strongest online security possible by instilling a security-focused culture in-house, and commit to regular staff training sessions.
If you don’t have this type of expertise on your team, it’s not a bad idea to consider engaging with an information security company to help implement processes and protect your online assets. Cyber security is an increasingly complex field and it’s not easy to navigate without at least consulting an expert to guide your company in the right direction.
Risk Three: Offline Security
In the digital age, so much attention is paid to cybersecurity that it can be easy to overlook the necessity of real-world security as well. This can end up being a costly error because although the modern day criminal is just as likely to use a VPN and a modem, there is still the risk of break-ins, thefts, or malicious damage.
Make certain that your real-world infrastructure is protected, and whether that’s a home office or a manufacturing plant, ensure that you have locks, alarms, and even cameras placed at the relevant points. The more sophisticated your budget allows, then the better your business is protected against crime, and the element of risk is drastically reduced.
Starting any new business carries a certain element of risk, and these three areas will not cover everything that may impact your startup. These common pitfalls should be high on your list of priorities, and will naturally lead to a much greater level of risk management. Minimizing risk is the first step to a successful business.
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