3 Ways to Avoid Exposure Risk in Your Business
This is THE WATCHWORD in Business
I'm excited to share with you a summary of a important topic in business:
Exposure.
Let's dive into these key points:
Understanding Exposure:
Exposure in business refers to the various elements that could potentially harm or negatively impact your business.
Client Dependence: One common form of exposure is relying heavily on a small number of high-fee-paying clients. This can be risky if these few clients start facing issues.
Diversify Your Client Base: To mitigate this risk, it's crucial to have a variety of clients. This way, you're not overly dependent on just a few.
Methods of Attraction: Another exposure is sticking to one method of attracting clients, like Google AdWords or social media. Relying on just one method can be limiting.
Spread Your Marketing Efforts: Try to diversify your marketing strategies. Test different methods while keeping your main source active.
People Dependence: Your business can also be exposed to risks through the people involved, like associates, suppliers, or employees.
Supplier Risks: For instance, if you rely on a specific supplier (like a printer for books), any issues on their end can directly impact your business.
Financial Exposure: The most significant exposure often lies in financial aspects, especially when tied to a few clients.
Client's Exposure to You: Remember, your clients also have exposure to your business. If you can't deliver your services, they might stop paying.
Subscription Models: Consider creating a subscription or membership program to reduce financial exposure. This can provide a more stable and spread-out income stream.
Continuity Programs: You could develop a continuity program with your material, like a series of webinars or online courses, offered over a period.
Membership Programs: These can be webinar-based, face-to-face, or a mix. While the income per member might be lower, the risk is more spread out.
Balancing Exposure: Always be aware of how exposed your business is in various areas - clients, methods, and people.
Self-Exposure: Don't forget to consider your own role in the business and how your actions or decisions might expose the business to risks.
Enjoy Learning: I hope you found these insights helpful! Remember, understanding and managing exposure is key to a successful business.
That's it for now! Keep exploring and learning, and I wish you every success in your business adventures. Until next time, from me
Peter
Peter Thomson
‘The UK’s Most Prolific Business Development Author’