Tag: adaptability in small business

Ways to manage small business risk

Risk is a fact of life, especially in entrepreneurship. At GoForth, we’ve created Canada’s leading online and mobile small business training to minimize an entrepreneur’s risk of failure. But there are some other ways you can minimize risk and uncertainty as an entrepreneur.

How entrepreneurs can manage risk and uncertainty

  • Learn creative ways to manage difficult times. No marketing budget? Try free avenues like social media and word-of-mouth.
  • Know your business inside and out so you can take more manageable risks.
  • Keep track of what’s happening in your business environment so you can be better prepared to anticipate conditions or react to uncertain times.
  • Change your perspective. Can an unpredictable business situation turn into innovation or a great new invention?
  • Don’t do anything on impulse. Sleep on it, plan it out on paper or speak with trusted advisors before jumping in.
  • Build a strong network of support that includes trusted professional contacts and loved ones.
  • Make time to relax and recharge. Trust us – a clear head is much better at evaluating risk!
  • Have a Plan B. And a Plan C too. Always have backup plans for a new product or service.
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Entrepreneurial Inspiration: Velcro and the power of creativity

Creativity is not just the domain of artists and musicians – it’s inherent in all entrepreneurs, too. Creativity is the ability to view the world in new ways, find hidden patterns, make connections between things that seem unrelated, and to find solutions. The ability to connect the dots in this way is the basis of some of the world’s most creative ideas and small businesses.

So, how can entrepreneurs be creative? Just think of Velcro.

In 1941, Swiss engineer George de Mestral took his dog on a hunting trip in the Alps. Back at home, Mestral, good engineer that he was, got out his microscope and examined the burrs that kept sticking to his clothes and his dog’s fur. He saw that they had hundreds of “hooks” that caught on anything with a loop, like his dog’s fur. And it knocked his socks off. He used this inspiration to invent Velcro – one of the world’s most popular products.

Mestral merged previously separate things to create a new combination that changed the clothing landscape. He used his creativity to see everyday things in new and useful ways.

Your creative ideas don’t have to be earth-shattering to be considered truly creative – what seemingly unrelated things can you combine to inspire a great new small business idea or way of improving your existing business?

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Being adaptable as an entrepreneur

In small business, change is inevitable. One of the advantages of owning a small business, however, is that you are better able to adapt to this change than a large corporation is. Think of the differences between a sports car and a semi truck. As a small business, you have fewer people to clear changes with, and have more flexibility to make those changes quickly.

Be willing to accept change in your small business and adapt accordingly

It’s important to be prepared to accept changes and alterations to the way that you do business, and be ready to adapt to market changes. You may not like having to develop a new product or service, or ditch an existing one, but if that’s the way your market is going, can you afford to be left behind? As an entrepreneur, you should realize from the beginning that where you are is probably not where you’ll end up. Change happens so often and quickly for entrepreneurs, especially during the planning stages as new opportunities and ideas arise. Lack of adaptability can result in unhappy customers, lost profits – and many sleepless nights for the entrepreneur.

How to prepare for small business change

You can’t always predict the changes your small business will need to adapt to, but you can give yourself the best tools to make the best choices.

Firstly, refer to your business plan – or create one if you haven’t yet. A business plan is a formal document that includes a description of the business you want to run, your business goals, and the plan for reaching those goals. It’ll have important information like what your product or service is, a description of your customer, an estimate of how much of your product or service your customers will buy, and an estimate of your yearly expenses. It’ll also outline plans for hiring people, building your product and getting it to market. It may also contain background information about the organization or team attempting to reach those business goals.

Secondly, surround your small business with the best team you can, people who can enhance your skill set. Look for people who know more about marketing, accounting, finance, operations or strategy than you do. These people can be part of your founding team, advisory board, mentor board, or management board. They can also be professional advisors such as accountants or lawyers. Their advice and guidance will be invaluable to you when change looms on the horizon for your small business.

 

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