• Will we secure a contract so important to our future
  • Will our senior accounts clerk resign tomorrow and how will I replace that person?
  • Will we be able to pay the wages that are required to be paid on Friday?

These are issues we have to address throughout the life of a business cycle. It does not matter whether you are a tradesperson, employing or contracting personnel, an importer or retailer of a product or a professional person - the issues confronting you each night are no different. There are three main issues business owners should be aware of:

  • Cash flow management - How do you pay wages and creditors? The business is making money, but how do you secure enough funds to meet your ongoing needs, as the business grows?
  • Skills shortage – You believe you could double your turnover in the forthcoming 12 months, if you had the right type of staff? How do you fill vacancies?
  • Forward planning - What are the real issues facing your business, which could hinder its development? How do you prioritise the important issues?

To begin to tackle these issues, the first thing we would suggest is to compile a list of those risks or issues that could have a major impact on your business and then prioritise these risks or issues into a list from:

  • the most urgent issues that could have a major impact on your business in the short term; to
  • those issues that you need to consider, but are not urgent.

The above assessment constitutes a risk assessment of your business environment, and enables you to identify:

  • which risks you consider to be urgent
  • the priority of each risk; and
  • what processes and resources should be put in place to offset the issues identified.

When undertaking a risk assessment of your business, the most important things to consider are:

  • how you should go about identifying what are the issues confronting your business;
  • are you too close to your business to identify such issues and do you need someone to assist you in this process; and
  • what are the plans or actions you can put into place to address these issues.

Once you have conducted your risk assessment based on your review, monitor the progress being made against your action items. The investment of time and money in engaging external advice could pay significant dividends in the long term.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.