Disasters happen, it’s the natural span of the world. An earthquake may strike unexpectedly, an automobile may collide with ours or a fire may destroy our homes. Many of these disasters are unexpected, unpredictable and random, and so are therefore unpreventable. If they happen, it’s tragic, but at some time you must accept the actual fact that they happened and move on.
There are several disasters available world with similar characteristics: they strike randomly, unexpectedly and may dismantle a business before you even understand what’s going on. But most business disasters will be the opposite — they are predictable and completely preventable, yet they have still ruined countless startups with otherwise promising potential.
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Allowing your business to succumb to 1 of the entirely preventable fates will result in regret. Don’t let these preventable disasters eventually you:
Let’s say you have something that nobody else is producing, and you’re desperate to obtain it to the market. You may forgo the original trademarking process and only establishing the groundwork for your production capacity. Or possibly you have a signature process you utilize in your core service, that you end up disclosing to a potential mate with out a non-disclosure agreement — because what’s the worst that can happen? A competitor can steal your product design. Your lover can sell your specific process to some other interested company. And you will be left with nothing which makes your business unique.
It’s easy to get worked up about your business and rush in to the first stages of full operations, nevertheless, you need to protect yourself. Research your facts in advance, register your business name, trademark your products once you can and protect your intellectual property with NDAs.
There is, of course, a flip side to the. If you are using someone else’s intellectual property without their consent, you could end up being the subject of a lawsuit. If the lawsuit doesn’t bankrupt your company immediately, the lengthy trial process and bad publicity may be enough to bury your business before you have even a chance to begin.
Of course, most cases of intellectual property misuse aren’t intentional. Maybe you opt for name for your company that been taken already, or you used a graphic that you thought was absolve to use. Before you utilize anything for profit, make sure to do your research beforehand. It could save your valuable business.
If your company isn’t profitable or if your idea isn’t as marketable since it seemed in some recoverable format, that’s a very important factor, but running out of capital can be an entirely preventable disaster. Your working capital may be the blood that keeps your business running. If it runs dry, you won’t manage to pay your bills, or your employees for example. It’s entirely possible to get a functional, profitable business but still go out of capital because you weren’t prepared.
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To avoid this, guard your money flow carefully. Establish firm payment terms, run criminal background checks on your own clients and use guidelines to ensure your money flow stays positive. Then, if it ever appears like you’re remotely near danger, secure more funding or a credit line that will help you close that gap.
Most cases of a business being outcompeted are completely preventable. Either a preexisting business proves to be too formidable to defend myself against, your business idea wasn’t unique enough to stand alone, or a fresh competitor emerged to contend with you in a fresh way. Most of these scenarios could be prevented by doing more research, responding quicker or some mix of both.
Keep a close eye on your own competition always and respond accordingly as fast as possible.
Your team is what drives your business forward, and in the first stages of your startup, you may only have a few employees. If indeed they all leave, you may be forced to up close look for good.
You can prevent this disaster in a few ways. First, become more thorough in your hiring process to remove volatile workers. Second, implement morale boosters to keep your employees happy. Finally, setup some degree of redundancy, a backup plan, to activate should anybody of your associates opt to leave.
Do something now to make sure none of the disasters strikes your company. With a small number of simple preparatory measures, you can equip you to ultimately not only fight these impending calamities, but also mitigate their effects as long as they ever inch toward manifestation. You’ll never have the ability to prepare for everything, however the more you can plan, the better chances you’ll have at long-term success.