When things are going really well for your business, it can be difficult to imagine things any other way.
However, this is the perfect time to make some positive changes to protect the future of your business, as well as to cut costs for your business long term.
So, we are here to give you three things you should focus on to future proof your business and prepare for when things might not be going as well!
1. Run Full Risk Assessments
The first thing you will need to do to future proof your business is to run full risk assessments of every area of your business. Some problems are simply out of our control, which you can get other types of cover for (discussed further on), but if you identify the ones that you can change and manage risk wherever possible, you will be in a much stronger position.
Every business will need to approach this risk assessment process differs depending on the nature of your business, so it is advised to consult an expert in your industry to get this right the first time around. However, some things that every business can do is to gain feedback from their employees about anything that concerns them, gather customer feedback to gain an insight into their experience and anything that is hindering it, look at your supply chain and identify any potential internal or external triggers that could be a threat to business, and so on.
If you don’t take the time to consider risks that might be coming your way, there is no way you can be sufficiently prepared when they do. So, take some time to identify risks and plan how you will manage them should they arrive.
2. Avoid Relying On One Area Of Your Business Completely
Our next tip is to avoid relying on one area of your business completely. The success of your business might be the result of a particular product that you make, so if the demand for this product dips or there is ever an issue with production, you are likely to lose a lot of money.
Again, you may think that your product is timeless until a more advanced version comes along. So, you should look at ways to expand your product range, by either creating completely new products within your niche or extensions to improve your existing product.
Product development is not a quick process, which we understand, but it is vital that you are continuously looking at ways to diversify your business and increase your revenue streams to protect yourself in the future.
3. Invest In The Right Insurance
Next up, you need to make sure that you have the right insurance. Insurance is absolutely essential for almost any business, but the specific type of insurance depends strongly on your business. There are core types of insurance every business needs such as public liability insurance, employers liability insurance, professional indemnity insurance, and business contents insurance. However, many businesses require more specialist insurance cover.
For example, if you are a business that relies heavily on one particular client, they may require specific account insurance in the case that something goes wrong, and their entire business may be at risk. If you trade on a credit basis, you should work with credit insurance brokers to find the right cover. If your business couldn’t function the same without a particular employee, you may need key person insurance. There are so many different things to consider here, which is why it is so important to work with an expert broker who will get you the right cover at the right price.
4. Create A Succession Plan
Our final tip is to make sure that you create a succession plan. You never know what can happen in business, so you need to plan who will take particular roles if someone is to leave. If someone very senior in the company decides to leave or passes away, then you should have a plan in place if they are essential to your business.
Either plan who within the company would take over their role or if you would need to recruit, decide what responsibilities the person would take on and if any other responsibilities could be passed onto other people.
You should invest in key person insurance, which will provide cover in the event that they become critically ill or pass away until you are able to get back on your feet as a business.
You never know what is just around the corner, whether it be key employees leaving, an unforeseen financial disruption, business partners going bust, or some kind of accident at work. This is why it is so important to invest in the future of your business now, to ensure its longevity, and to make the future more certain.