In business, resilience means building your company up to be as strong as possible and to be able to stand up to attacks and bad fortune. This means that if you should lose a client, or if you should lose a lump of money some other way, that the business will be able to carry on relatively unscathed.
Being resilient as a business is highly important. While you might be successful now this doesn’t ensure in anyway that the same will be true in ten to twenty years. If your company is resilient however then it has longevity and it has a future and this is something worth investing in.
There are many forms of resilience and many ways you can obtain it as a company. Here we will look at a few.
Insure Yourself: If you want your company to be resilient then you should insure it against everything you can think of. This means you should insure your property, it means you should insure yourself against loan repayments, and it means you should get business liability insurance.
If you get business insurance liability, this then means that the company is protected against a formal lawsuit. In other words if someone is to try and sue your business, then you will be protected against the legal costs as well as any financial liability incurred. This means that whether you win or lose your company will be protected – which is of great value seeing as one bad lawsuit can bring even the mightiest of companies to their knees.
Business insurance liability is able to help companies to protect themselves against unhappy former employees, against companies and individuals who feel you have used their intellectual property and more. The media for instance might benefit from business insurance liability in order to protect themselves from defamation lawsuits.
Have Multiple Baskets: For your eggs that is – if you only have one or two major clients, then it doesn’t take much in order for your company to sink. Meanwhile if you sell just one product and that falls out of failure this will spell doom. Make sure then to have as many independent revenue streams as possible and you will ensure that your empire is far more resilient to change. Just look at the success of Virgin – it would take a catastrophe to completely bring that brand down.
Plan Ahead: In order to plan for the future and to protect your business from it you need to do your research and invest in it. Taking out insurance is investing in the future, but likewise you need to be thinking about what the ‘next big thing’ is at all times, and you need to make sure that you have contingency plans for every eventuality.
You can achieve the latter through something called ‘counterfactual simulation’. Here the idea is that you run through a ‘simulation’ of what you would do under certain circumstances. For instance then, if you were to lose your main client, what would be your next move and how would you survive?
Business insurance liability is one form of insurance that can help make your company more resilient. Follow the links for more business insurance providers.
Article Source: http://EzineArticles.com/expert/Pierce_Mc_Roswell/1250503
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