5 Tips to Protect Your Business from Uncertainty

If there is one thing that we have all learned over the past 2 years, it is that you need to expect the unexpected. If we were to turn the clocks back to 2019, none of us would have expected the two years that were to follow. Businesses all around the world have experienced sheer turmoil due to the Covid-19 pandemic. And while many businesses have thrived, on the whole, companies have faced mass uncertainty. With that being said, it seems like an apt time to learn about protecting our businesses from uncertainty. What steps can you take?

• Be Prepared For Different Outcomes

If there is one thing we can all be certain about, it is that nothing goes as planned in business! There are always curveballs along the way, and this is something you need to be prepared for. Preparing for different outcomes, also known as scenario planning, can help you to identify a range of possible impacts and outcomes, evaluate responses, and manage both negative and positive possibilities. By visualizing possible opportunities and risks, companies can become proactive, instead of just reacting to events.

Here are some steps you can follow when scenario planning:

1. 1. Brainstorm future scenarios
   2. Identify trends and driving forces
   3. Create a scenario planning template
   4. Develop a scenario
   5. Evaluate a scenario
   6. Update strategies and policies accordingly

• Equipment Leasing

Another strategy that can help you to deal with periods of uncertainty is equipment leasing. Equipment leasing companies offer flexible financing terms that enable you to acquire equipment for set periods of time. The beauty of this is that you can easily scale up or down based on demand. So, if you’ve suddenly experienced a spike in demand, you can lease more equipment for a set period of time. At the same time, you can reduce your leasing commitments during periods when demand for that equipment is slow.

• Maintain a Constant State of Review

Forward-thinking businesses are going to understand how important ongoing analysis is. Constant and consistent review is critical to understanding your progress. Unfortunately, a lot of companies put together business plans at their inception, and then they never address them again. If you do this, you are never going to be agile enough to adapt to the changing conditions around us.

• Look for Ways to Spread Risk

In addition to the tips that we have mentioned so far, it also makes sense to look for ways to spread risk. Consider the key risks to your company, and anywhere you deem the risk to be high, look for ways to spread it. This could include moving to smaller premises, lowering your debt, or expanding your customer demographic.

To give you a better understanding, some of the main risks that businesses face today include the likes of natural catastrophes, climate change, changing market conditions, regulatory and legislative changes, and cyber incidents.

Of course, risks are changing all of the time, and so it is important that you continue to assess your current position in the market so you can identify risks early on. You should always consider every risk appropriately, estimate, and prioritize each one.

• Look for Ways to Diversify Your Business

If we look at the companies that thrived during the pandemic, we will notice that a lot of these businesses diversified their operations. The simplest example of this would be restaurants offering a takeaway service. However, there are lots of different ways you can diversify your business, for example, you can look for ways to bring your efforts online.

In that regard, here are a few questions you might ask to consider the ways you can expand your services:

1. Can you adapt how you provide the same service?
2. Could you link up with another business to provide a more comprehensive service?
3. Is there a new audience segment or audience you could reach without your current customers being alienated?
4. Is it possible for you to evolve your product or service in a small way without doing something entirely different?

These questions should help you to spark off some ideas that will help you and your team to come up with effective ways of diversifying your business.

Final Words on Protecting Your Business from Uncertainty

From equipment leasing to maintaining a constant state of review, there are a number of steps that your business can take to prepare for uncertainty and minimize risk. In the turbulent times we live in, only the strongest and most flexible businesses are going to survive. This is why it is important to consider how your business is going to deal with uncertainty and what plans you are going to put in place. Use the five steps above as a starting point.