16 Feb How to Increase Your Payoff and Lower Your Business Risk
Some people have a high tolerance for risk. Most people who go into business for themselves share this characteristic.
A high tolerance for risk may also manifest in other parts of their lives in the form of bungee jumping, skydiving, ziplining, riding a motorcycle.
You may run the risk of serious bodily injury or death – pretty serious consequences.
People cut from the same cloth tend to be non-conformists who are comfortable with the large amount of risk that comes with starting a business without knowing if there will be a positive return on their investment.
Mitigate Your Risk
I’m interested in lowering the amount of risk that my clients have.
Once you have an established business and you’re running it, risk is multi-dimensional.
One dimension of risk when you’re in business is doing your best to try to prevent getting sued or fined. There is no way to foresee this because anyone can sue at any time. With steps to mitigate the risk ahead of time, the lawsuit can also get dismissed if it doesn’t hold any weight.
That’s exactly where you want to be.
You want to also make sure that you don’t get investigated or fined by the government for noncompliance with laws that are applicable to your business. If you have a lawyer on retainer, they can do this for you much quicker than you can and you can rest assured that the right professional is handling that aspect of your business.
Mitigate Risk With Others
The other consideration is when you do business with another business. This could be in a subcontractor capacity or joint venture. You never want to get involved with another business that does not care about being lawful.
Don’t be guilty by association. Ignorance of the law is never an excuse. It is important to have your lawyer review any subcontractor or joint venture agreements, or other documents of the same type that establishes a relationship with another business.
Trust your gut instinct – if anything gives you a funny feeling because it doesn’t seem right, that’s also where you’ll want to check with a lawyer.
Keep Your Money
Aside from being excited about the goods or services that your business delivers, you probably also get excited about having a successful business that stays afloat and earns you an income. Let’s face it – you are a business. The ability to make money is part of the primary goal of being a business owner.
You’re a for-profit business and there’s beauty in going from jumping off the cliff into the depths of the unknown – not knowing whether you’ll sink or float – but knowing you must float.
You give it your all. You work hard. You work smart. You keep educating yourself about your industry and how to run your business.
One day you look at your life and realize you love the life you’ve created.
Your business floated. The business remained out of trouble. It gave you a lifestyle that is rich in experience.
That’s why we take the risk. When you remain on your path and keep your exposure to liability low, there is a chance for you to have great benefits and payoffs ahead!
Get up to speed on ways to mitigate risk – and reach out to me! I want to be your partner in growth!