The Biggest Risk Facing Business Owners

There are many potential risks facing business owners. Maybe you’re worried about supply chain issues or the loss of a key employee. Perhaps it’s locking in financing to help grow your enterprise. While these are all legitimate concerns, they pale in comparison to the one overriding risk most business owners face. Their inability – or unwillingness – to step back from day-to-day operations.

Most entrepreneurs are so busy juggling and meeting the moment of the day that they forgo strategic planning. They wear too many hats and look to themselves to do most tasks. As a result, they are overloaded and lack the time to focus on higher-level duties. Our team gets it. For many owners, they’ve devoted their entire life to growing the business. They put in endless hours, believed in the venture when others didn’t and raised it from the very beginning. It’s their baby. And, just like raising a child, it can be hard to let go.

The risky mindset

But that mindset is risky. When your head is buried in the weeds, you miss out on important things. Sales opportunities slip past, inventory isn’t tracked well, and expenses can grow to name just a few. The fact is if we’re doing many jobs we’re probably not doing any of them very well.

By hiring qualified people and allowing them to take tasks off your plate, you can step back and become the visionary your business needs. It gives you the opportunity to set your company on the path to long-term growth. That includes being well prepared to exit out of the business when the time is right and maximize its value.

Yellow Cardinal Business Succession Services helps clients achieve all of these goals. Whereas some firms are focused on just lending money, we take a more holistic approach. Our experienced professionals take the time to get to know your business, point out financial or accounting risks and suggest ways to address them. We work closely with teams across the bank and introduce you to valuable professionals as the need arises.

The steps of a risk assessment

Your Business Succession Services advisor can help you complete a risk assessment. They’ll suggest steps to take now to prepare for what’s down the road. Typically, that starts with sharing your financial statements. We’re not talking an Excel spreadsheet but a detailed list of your company’s assets and liabilities. You’ll also be asked to provide an employee organizational chart with each person’s responsibilities. We can take an objective look and help you optimize your workforce to make sure the best talent is in the right roles. Finally, we’ll go over (or have you create) your company’s mission statement. This crucial document stakes out your company’s place in the marketplace: who you are now, what customers know you for, and who you aspire to be.

Ultimately, the greatest risk for business owners isn't just about the hurdles they face, but the mindset that keeps them chained to the daily grind. It's time to break free, empower your vision, and let your business soar. At Yellow Cardinal, we're here to help you leap into the future with confidence and success.