I have been working with several clients over the past week who are experiencing significant business risk – which leads to significant stress. What risk? Well, one client has 25% of their revenue coming from a single client. I think we can all agree, that is risky. Another client has only one team member doing all their tax review. That is risky. Clients leave, team members leave. What is your risk tolerance and what is your plan to mitigate your risk?
Now we all have different risk tolerances so there is no right or wrong answer here. My point is rather that we all assess our own risk tolerance and then build our business around that in order to minimize our perceived risk and hence, our stress level.
What are the perceived risks as you see them in your business? Cash flow? For some firm owners cash flow is a huge risk if they are carrying heavy receivables balances.
Let’s address each risk area within your business. Look for strategies to mitigate the risk. This is my field of expertise. No more sleepless nights over the “what ifs”.