Risks are part of entrepreneurship. On the one hand that makes it so adventurous, but on the other hand you prefer to limit your risks as much as possible. Risk management is therefore very important to give your company a flying start and to grow it. In this article we share tips with which you can get started, so that you prevent your company from running unnecessary risks.
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A strong start
For a strong start, new entrepreneurs are often advised to set up a BV for risk spreading. However, this legal form also has the necessary risks of personal liability for the actions of the legal entity, for example when:
the company suffers damage as a result of (demonstrable) mismanagement;
payment insolvency is not reported;
the legal entity has been officially incorporated by a civil-law notary, but has not yet been registered with the Chamber of Commerce;
if an association is not formally incorporated through a notary (this is called an 'informal association');
you, as a director, are guilty of an unlawful act (such as an irresponsible purchase).
Also immerse yourself in drawing up general terms and conditions , in which you record, for example, how you deliver your product or service to your customers and under what conditions. You also include what you expect from your customers when purchasing your product or service. In this way you avoid the risk of miscommunication and legal conflicts, but also of additional costs when you assume that your customer pays them under certain circumstances, but that your general terms and conditions have not been communicated to the customer. You also arrange what happens in the event of force majeure. By recording all these things, you run less risk. Do not forget to deposit your general terms and conditions with the Chamber of Commerce!
Types of risks
The possible risks for you as a starting entrepreneur can be divided into different categories:
Business risks
These types of risks pose a threat to your business operations. Think of problems in the supply chain or a strategic risk that you run when your business plan is outdated and does not sufficiently match what the market demands today. By profiling or not profiling in your industry, you run certain reputational risks.
Personnel risks
The most common personnel risk is absenteeism due to illness, but as your company grows, expanding your workforce also entails risks. Do you retain your employees when the economy is not doing well?
Personal risks
As an entrepreneur, you can suddenly fall ill or die, but you can also make mistakes when running your business. Depending on the chosen legal form, you run more or less risk of personal liability for trading loss, but there is always a certain degree of risk.
External risks
Events in the world can have a major impact on your business operations. It may concern natural disasters that damage your business premises, but just as much the current conflict in Ukraine, which has caused problems for companies that have to import grain for their production. Digital crime, such as hackers who want to 'hostage' your sensitive data and only return it against payment, is also on the rise.
As you read, entrepreneurship has many risks, but fortunately you can arm yourself against this in several ways. But how do you ensure that your company, your staff and your equity remain well protected?
Well protected Insurance
Once you've got off to a flying start, it's important to identify your business risks. There are countless things that can go wrong and there are just as many insurance policies available that you can take out. Think of health insurance, home insurance and various liability insurance. You can also insure yourself against business damage or theft, against continued payment of wages and reintegration in the event of absenteeism and more. Get advice from an insurance advisor about which insurance policies are right for you and which are necessary or mandatory.
Safety
Later in your career as an entrepreneur you may encounter fraud, scams and other forms of crime. Customers can also become aggressive for certain reasons and take this out on you as an entrepreneur. Prepare for this and always be alert when bringing in new customers or partners. Be aware that you can be found after you have registered with the Chamber of Commerce. In addition, it is wise to invest in security systems for your website and business premises. For this you can obtain information from security companies and manufacturers of security systems.
Protecting yourself and your customers against breaking the law means that you yourself must be well aware of the laws that relate to the provision of goods and services. On www.ondernemersplein.nl you can find all the laws that you as an entrepreneur may come into contact with during your adventure. By absorbing these properly, you know the law and you can also better defend yourself when customers submit damage claims.
Risk spreading
Another way to limit the risks for your own company is to spread them. The best example of this is probably 'factoring', which means debt management that is outsourced to an external agency. If you arrange debtor management yourself and the debtor in question has no money to pay you, the continuity of your company can be jeopardized. If you leave the debtor management to such an external agency, they pay the costs of the customers and recover them from the customer themselves. This way you can continue with what you prefer to do, doing business! This ensures that your company does not become the victim of someone else's financial misconduct.
Do the insurance scan
Are you curious which insurance policies are useful for your company? Then do the insurance scan . The result is discussed with the adviser and the application for insurance can then be initiated.
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