Top Menu

  • Home
  • Write For Us
  • Live Rates

Main Menu

  • Money Exchange
  • Career Advice
  • Home Decor
  • Global News
  • Business
  • Trading
  • Technology
  • Media
  • Home
  • Write For Us
  • Live Rates

logo

Header Banner

  • Money Exchange
  • Career Advice
  • Home Decor
  • Global News
  • Business
  • Trading
  • Technology
  • Media
  • FinTech Abu Dhabi Festival 2020 kicks off today

  • UAE allows 100% ownership of businesses for foreign nationals starting from December 1, 2020

  • Two men caught leaving London for Dubai with cash-filled suitcases

  • Rupee becomes 3rd best Asian currency

  • Ten caught for Money Exchange shop robberies

BusinessCareer Advice
Home›Business›Key Risks Which Small Businesses Must Avoid

Key Risks Which Small Businesses Must Avoid

By Money Exchange News
November 17, 2020
161
0
Share:
business risk audit

This year has been a real humbling one for so many businesses and one of the key learnings which those who have survived have to make, is that of risk. It’s tough of course but those businesses which didn’t make it through the pandemic are those who were already overstretched with regards to risk, and the levee unfortunately broke. This is a topic which business analyst West Seegmiller has spoke  about a great deal recently and businesses which have survived would do very will to pick up on the lessons which 2020 has shown us with regards to levels of risk. 

These are the key risks which all businesses, especially small ones should look to avoid. 

Bad debt 

There is nothing wrong with taking on a bit of debt for your business but this must be from a reputable lender, with good terms and most importantly, for a very affordable amount for your business. If your company is paying any more than 20% of its income on debt then you should look to renegotiate or consolidate. 

Rapid growth 

One of the biggest mistakes which so many businesses make is that they try to grow above their means. This results in premises which are too expensive, additional staff which aren’t needed and ultimately additional expense without the additional income. Businesses should always consult with financial managers and consultants before they decide to scale up, to ensure that it is viable. 

Outsourcing 

There are two main risks associated with outsourcing, the first is a complete failure to recognize its value and the second is going over the top and outsourcing too much. With regards to the former, it is absolutely critical that businesses understand the need to outsource. At the very least your business should have outsourced its HR and accounting as well as marketing. The only thing to remember is that when you outsource, you have to ensure that you are getting a solid ROI. With regards to over outsourcing, your business, at most, should be outsourcing 3 or 4 operations, and they should all be making your business better and more profitable .

Over hiring 

Hiring too many staff not only costs money which you don’t have to spend, but it also means that it is more difficult to offer exactly the same service to your customers across the board. Hiring extra staff should be done in reaction to a spike in activity.

Forgetting Loyal Customers

The need for new customers is always there and businesses will always have to ensure that they are pushing to grow the number of customers which they have. All of this is fine but you must never lose sight of the loyal customers which you have, they are the ones you really need to look after. It is more difficult than ever before to get loyal customers and this is why your business must do its bit to recognize them and to keep them satisfied. 

Don’t fall into the trap that so many have before 

Tagsbusiness risk assessmentbusiness risk auditbusiness risk managementbusiness risk vs financial riskhow to calculate business risknon business riskwhat are the causes of business risk
Previous Article

4 Reasons Why Lead Generation Will Improve ...

Next Article

UAE Central Bank extends Tess scheme to ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Money Exchange News

Money Exchange News Website is a fantastic platform for all our readers as we provide them with an ample of valuable information over a plethora of worldwide topics. It is a real honour for us to publish important news and current updates over matters like Business, Travel, Career Advice, Trading, Investment, Visa Rules, Health Tips and much more.

Related articles More from author

  • car leases in NYC
    BusinessCar Rentals

    Here’s How to Get a Car on lease with No Down Payment

    November 22, 2020
    By Money Exchange News
  • team building strategies
    Career AdviceEducation

    Tips on How to Build a Strong and Efficient Team

    December 12, 2020
    By Money Exchange News
  • CBAP Certified
    Career Advice

    How is CBAP Certification useful

    September 26, 2020
    By Money Exchange News
  • iOS Mobile App Development Trends in 2020
    BusinessTechnology

    Latest iOS Mobile App Development Trends in 2020

    September 6, 2020
    By Money Exchange News
  • Relocating For Work
    BusinessMovers and Packers

    Relocating for work? Tips to have a successful move

    December 15, 2020
    By Money Exchange News
  • bitex uae, bitex uae review,
    BusinessIndia News

    Cryptocurrency This Week: India welcomes UAE’s digital asset exchange Bitex

    November 11, 2020
    By Money Exchange News

Leave a reply Cancel reply

You may interested

  • Banks In Kuwait Considering Acquiring Money Exchange Companies
    BusinessMergers/ AcquisitionsMoney Exchange News

    Kuwaiti Banks considers acquiring money exchange companies

  • car leases in NYC
    BusinessCar Rentals

    Here’s How to Get a Car on lease with No Down Payment

  • work permit dubai
    Crime And CourtsUAE NewsUAE Visa Rules

    All you need to know about temporary work permits in the UAE

Recent Posts

  • Retirement Plans: 4 Tips For a Successful Retirement
  • What is Employee Recognition? And Reasons why it is Important
  • Covid Vaccine: Health worker dies a day after taking jab in UP
  • Tips to Retrieve Lost Password from Outlook Protected PST Files
  • How to Choose the Right SEO Company for Your Business

About us

Money Exchange News Website is a fantastic platform for all our readers as we provide them with an ample of valuable information over a plethora of worldwide topics. It is a real honour for us to publish important news and current updates over matters like Business, Travel, Career Advice, Trading, Investment, Visa Rules, Health Tips and much more...
Fully Managed WordPress Hosting on SSD Drive
  • Recent

  • Popular

  • Comments

  • Retirement Plans: 4 Tips For A Successful Retirement

    Retirement Plans: 4 Tips For a Successful Retirement

    By Money Exchange News
    January 21, 2021
  • Employee Recognition? And Reasons Why It Is Important

    What is Employee Recognition? And Reasons why it is Important

    By Money Exchange News
    January 19, 2021
  • Retirement Plans: 4 Tips For A Successful Retirement

    Retirement Plans: 4 Tips For a Successful Retirement

    By Money Exchange News
    January 21, 2021
  • Lights hath may cattle first had blessed god bearing bearing

    By Money Exchange News
    July 16, 2015
  • Home
  • Write For Us
  • Live Rates
© Copyright General News Blog. All rights reserved.