Four risky situations for your company
When entrepreneurs enter the business world, they go through situations that endanger the future of the company. For this reason it is necessary to be well prepared in order to know what decisions to make in a situation like this. It is also important to recognize which of these situations envision a danger to the company. Let’s see four of them.
1. Outsource managers
When you hire someone to perform management activities that you might as well do as the leader of your business, you put at risk your business. This is because many times, the person hired was part of some other company, bringing some of these trends to your business, or doing work with a particular interest. As such, to avoid such situations it is preferable that you obtain information you need or that you work with people from the same company as yourself before doing this kind of work involving a lot of commitment to the business.
2. Having one subcontractor
You do not want a company to do everything for itself, so it is necessary to hire staff for subcontracts. Lack of subcontractors can lead to dangerous situations for joint work of a business. Contracts with secondary parties give more activity to recruitment. Also having several subsidiary will help you be fully operational if one of them fails you.
3. Relying on a single large customer
When one of the customers you represent is an important part of the profits of the company, you will be dependent on this and any outflow would create high risk for the activities of your business. It will not be easy to do with negotiations which represent for example 80% of the profits and you could not demand much. Although it is normal to have very important customers, your profit would be distributed in a more intelligent way if several of them represent your business income.
4. Absence of capital
Another risk occurs when one of your clients is very slow to make payments on time, causing a waste of time and money. If you do not have sufficient resources to pay your suppliers, you’ll be forced to enter into a legal process or contract of a new subsidiary which will put you in a comfortable.