Key Issues in Running Your Business

2. Minimise Risks

Your business will inevitably face a wide range of potential risks. But with good management, you can reduce them significantly.

You should also put contingency plans in place to help you cope if things do go wrong.

2.1 Take out any insurances you need.

2.2 Build customer loyalty to reduce the risk of losing a key account.

• Diversify your customer base to avoid excessive reliance on one account.

2.3 Always control your cashflow (see 1.2).

• If disaster threatens, take positive steps.

2.4 Treat your employees fairly to minimise the risk of resignations.

• Offer competitive remuneration and a pleasant and rewarding working environment. See 1.3 and 3.4.
• Share knowledge and skills to avoid relying too heavily on one key employee.

2.5 Make sure your computer systems, and the data stored on them, are secure.

• Take regular back-ups so you can restore data if your system crashes.
• Set up manual systems that will allow you to carry on working when PCs are down.

2.6 Make sure you comply with the Data Protection Act if you process information about other people for business purposes.

• All personal information held on computers or in manual records is covered by the Act.

2.7 Major problems with your premises can be both disruptive and expensive.

• Secure your premises.
• Failing to act soon enough when a lease is due to expire, and being caught out by large increases in rent and rates, are common problems.

2.8 Negotiate solutions to disputes if you can.

• If you have to go to court, make sure you understand and follow the key steps involved.

2.9 Get advice and help if you plan to trade internationally.

• Contact UK Trade & Investment (020 7215 8000).
• Visit the British Chambers of Commerce Export Zone website.