Bogdan Pop

Is your business healthy?

Don’t jump and answer yes if the income or profit graph for your past year looks similar to the graph in the picture. Having a healthy business is not only getting higher profits or more income.

If your numbers snap into the graph you are on the right track, but have you considered any risks that could turn that graphs upside down in a matter of weeks? If you haven’t it is time to start doing so.

How many clients do you have? Is any of them, or a combination of clients in a monopoly position?

If you answered just a few or enough for the first question, then you expose yourself to a lot of risks. Here’s just a bad scenario I could think of right now. Half of your clients decide they no longer need you! Yes… it can happen. Think of this as the worst case scenario. Your revenue drops to half before you have time to cut your costs in half and in a blink of an eye you’re now on loss.

A good solution is to get more clients. You’re probably be okay when your answer to this question is somewhere close to more than I can handle.

What about the monopoly?

I am referring here to revenue monopoly, not anything else. Is any of your clients or a combination of a few clients generating more than 50% of your revenue? If yes, you’re again big trouble and walking on a very risky slope. If the client or clients combo suddenly cancel your services, your income drops by half again. Your costs remain the same and all of a sudden you’re on loss. Again!

So, if you do have a couple of clients generating most of your revenue, start getting more clients and diverging your income streams away from the few channels you’re currently on.

There’s more to it…

Of course the above are just a couple of ways one thriving business could go bust in no time. There’s a lot more things that could go wrong, and if you think of any please share them.