By Damilola Faustino
If you are the owner of a startup, you are obviously a risk-taker. But be careful the risks you take, lest you burn yourself. Not all risks are worth taking. Here are smart and simple ways to minimise the impact of any potential failure in your business.
Diversify your income
You must not depend on one source of income as a business man. The reason for having multiple sources is to cushion the effect of business failure.
Save more money
When you build a business, there is nothing more comforting than having a savings account. This will come handy when times are tough. Importantly, you should never go on a spending spree, especially when your business is just starting to boom.
Do a market research
You must never start a business without doing a market research. This is will give you an idea of your target users/audience as well as determine the sustainability of your product. Never assume for them.
You do not need superpowers to make a business forecast. There are basic things you can predict, including when you are going to run out of cash, periods when turnover will slow and when you have to cut cost. If you cannot do this, you can employ an expert.
Work harder and smarter
As an entrepreneur, you have to work round-the-clock. Despite this, you have to ensure that you do not only work hard but work smarter. In addition, you must find a work-life balance to prevent entrepreneurial burnout.
Take advantage of insurance
As a startup, the last thing you will think of is insurance. This is because you are probably bootstrapping to run your enterprise. Regardless, you should still insure your properties in case the business fails. It will prevent you from losing everything.