Sometimes, getting into business is risky. But usually, the risks come from the market or the economy.
But what happens if you’re trying to sell something inherently risky? What then?
That’s the topic of this post. We look at some of the things risky retailers should do in today’s market to not only survive, but thrive.
Partner With High-Risk-Friendly Vendors
The first step is to partner with vendors who feel friendly towards you. You need someone who’s going to be there no matter what happens.
Finding a payment provider for high risk retailers is the first step. You want a company backing you up that’s going to keep the money flowing, even if regulators and other officials are breathing down your neck.
You’ll also need to look for banks used to working with high-risk industries. These can help you avoid sudden service cuts that leave you in the lurch.
Diversify Revenue Streams
You could also explore the possibility of diversifying your revenue streams, exploring new products and markets to sell to. Diversification is essentially a backup plan if you can no longer sell your main lines for some reason. Stability in one area of your business can make up for volatility in another.
Invest In Risk Management
You also want to invest in risk management. Putting a proactive plan in place can help you shield yourself against the worst of the fallout when it inevitably occurs.
For example, you could:
- Invest in cybersecurity protocols for your business
- Add physical and safety protocols to your premises
- Use fraud detection systems
- Work with managed security service providers to seek weak points and vulnerabilities
Understand Your Risk Category
At the same time, it helps to understand your risk category (i.e. your industry and what makes it so dangerous). Once you have this information, you can start working on mitigation and abatement strategies to put insurers and other vendors at ease. You can also help investors by proving that you’re doing everything you can to protect your bottom line and secure your market advantage.
Build A Strong Financial Profile
While this is going on, you also want to build a strong financial profile. Even if sales do fall short of where you want them to be, making your finances stronger can be a great way to weather the storm. As a risky business, you always want some money in reserve for a rainy day.
Educate Your Team
Educating your team is also a critical part of the process. The people who work for you should understand the threats your organisation faces and how to manage them effectively. You don’t want to be in a position where you feel defenseless.
For example, you could provide training on risk awareness, showing employees what to look out for, and what could potentially go wrong. You could also do things to maintain your business’s reputation or train employees on compliance. Even these small measures can have a profound effect on how your business performs over the long term.
