When you set up a new business, it is important to remove any rose-tinted spectacles you may unwittingly have put on. While a positive attitude is crucial to getting a business off the ground, it can sometimes cloud people’s judgment.
Staying aware of what could go wrong makes it less likely an event will derail you if it does occur. Here are a few examples:
You and your business partner fall out
Going into business with someone can be intense. You might spend more time with each other at the start than with your families. The pressure to succeed and the financial costs of failure can add pressure to a partnership and may lead yours to break. Be sure you document how you will handle that should it occur.
An unhappy customer takes you to court
Being on the end of litigation can be demoralizing and time-consuming. That is true whether it’s a customer, supplier or government entity that takes you to court over something. Even if you win the case, it may do significant damage to your reputation and bottom line. The consequences could be much worse if you lose.
You suffer ill health
Let’s say you set up a software company, then, a year down the line, find you can no longer use a keyboard and mouse due to carpal tunnel syndrome. You might find a way around it, but you might have to look for a new career and leave or close the business. Or maybe you get injured in a car wreck and can no longer work at all. Injury to you, whether short or long-term, could have a massive effect on your company’s ability to survive.
Hopefully, none of these things will occur. But, if you accept they could and consider your options now, it can help you build a more resilient company.
