As an SME owner, one of the many challenges is to balance risk against reward. There are those who are overly cautious, while many others will cheerfully take the plunge without fully taking into account all the potential pitfalls of their decision.
But awareness of the risks that could disrupt your business is crucial when it comes to growth and the future.
As Paul Anderson, assistant head of risk underwriting at Euler Hermes, says: “Failing to plan for a shock is common among businesses that have previously seen success. Just because you have done okay in the past doesn’t guarantee it will continue to be so in future. For example, the bigger you get, the more you will appear on competitors’ radar, which is a risk in itself.”
Victoria Keeling, direct and bank distribution underwriting manager at Euler Hermes, adds: “Everything comes back to knowing the market, knowing your obstacles and risks, then trying to prevent them.”
Here’s a series of steps that will help you avoid the common pitfalls…