Above all other goals, every entrepreneur wants to stay competitive— because if you ran out of business then you’re as good as “back to square to square one.”
Staying competitive involves knowing the risks that today businesses face; things that could ruin your bottom line. If your business isn’t ready to keep up with new trends and address the growing pains in your sector then you are bound to lag behind and lose customers to you fast-moving counterparts.
The move towards a customer-centric way of conducting business has increased the risk of failure among merchants. Customers now want a more secure, user-friendly, and supportive ecommerce experience.
Besides customer expectations, you also have to deal with the upcoming startups that threaten to throw you out of business. Plus, other times, tweaks in the law by industry regulators may force you to adapt to take on new practices.
To rise above the aforementioned challenges, start by thinking about risk management as a priority and not a cost to your business. Discover some of the risks that could kill your business in 2019 and in future.
1. Inadequate human capital
Recruiting new skill and improving existing talent is an excellent way to bridge the gaps as your firm continues to expand. Your team also becomes more expensive as the need for a more competent and skilled staff base becomes central to business success.
Mange this risk in two ways: recruit and upskill. Always save a budget and some time for recruiting even when you feel you have plenty to prepare your business for future needs.
Insist on high standards even when desperately in search of skill set to fill a vacant position.
It the need is urgent, outsource until you get a qualified person for the role.
You also need to empower your current workforce to keep updating their skill sets by making the most of further learning and training opportunities. Give your staff a chance to train each other providing them with the right interaction tools and proving that your company is willing to help them upskill.
2. Speedy digital transformation
In a research by Gartner survey, only a small group —29 percent of the subjects— said they were ready to manage the risks that come with digital transformation. You can be part of this savvy group by focusing on time.
Find out what fits your business and the areas where you can make improvements and then take on the digital opportunities to promote a continuous advancement culture.
It doesn’t make sense to go after every piece of tech that enters the market. Concentrate on the developments that matter the most to your business. Consider productivity resources as well as those that can help you manage core roles such as taxes, payroll and accounting. Artificial intelligence is also another digital tool you cannot afford to ignore.
Lastly, ensure to train your staff on the niceties of whatever technology you choose to work with. It will ensure your business is always headed in the right direction.
3. Regulatory Changes
Lastly, you want to stay on the know with the changes in rules and laws in the following aspects of business;
- Industry laws
- State and Federal regulations tied to your business
- Laws by card providers and payment providers, more so, chargebacks
- Regulations by lending institutions
Any tweaks in any of the above laws will significantly impact your business. If possible, assign a team to monitor changes in rules across all aspects of your business.
Be proactive. Monitor the above risks in 2019 and in future and you will most likely find your business on top of the business ladder.