Sunday, December 25, 2005

Managing Your Small Business Risks

This year has brought about many different instances where small business owners had to deal with disasters and potential risk exposures. From the hurricanes that hit the gulf coast to the even more recent mass transit strike in New York City business owners must be responsive to the ever changing and unexpected occurrences in the daily operations.

This is why it is important for small business owners to plan for the unexpected by developing a contingency plan if a disaster or any other exposure arises. Although a small business owner may have more on their plate (dealing with day to day tasks) it is important to have a contingency plan to ensure the business can continue to operate after any unexpected risk exposure.

A typical business contingency plan would consist of addressing the following areas:

Technology Issues – How will data be handled, Is data backed up?
Financial Issues – Can income and expenses be tracked and completed? How will this be done?
Operations Issues - How will communication between employees, and locations be done
Any other business segments/infrastructure

By addressing this issues before risk exposure occurs can even make a small business more productive. When a small business “tests” various risk scenarios, they can often devise new product and service offerings and new ways to “do business” that can create additional revenue for the business.

Let me also take this time to wish everyone Happy Holidays and much success in the coming year!

Brian N. Stovall
Consultant – Accounting & Business Advisory
The Brico Group, Inc.

No comments: