Solopreneurs: Essential Business Risks You Need to Know
Starting a business as a solopreneur can be an exciting and fulfilling venture. However, there are some business risks that can make the journey daunting. While such risks may be unpleasant topics of discussion, it is essential that such key risks are taken into account.
Some of these risks are foreseeable while others not. Regardless, it is essential to equip yourself with knowledge of these risks so as to safeguard yourself and your business.
Two main form of business risks are:
- The danger of legal suits and cost of litigation.
- The cost of business interruption due to accidents and other circumstances.
Litigation due to errors and unfortunate accidents
As a consultant, you will be engaged for your expertise and knowledge from companies of different industries.
Regardless of whether you are an experienced individual or a young company, mistakes are bound to happen from errors or unforeseen circumstances – and the end result often does not end up in your favour.
In a worst case scenario, unhappy clients may take legal action against you for such mistakes which could be devastating for a consultant just starting their career.
Litigation due to breach of personal data
Personal data has become a hot topic of late with news of regulations being passed in Singapore to tighten the security of companies with insufficient data protection.
This comes on as the trail of websites that collect customer’s personal data being breached, with the ensuing company being fined.
Not only will this affect your business with possible lawsuits, there will also be a loss of consumer confidence that will impact your company image in the long-run.
Litigation due to poor directorship
Being a young director of a company can be a challenging task. From having to manage investors’ expectations (i.e. accelerators, start-ups, fund management) to making difficult decisions, poor directorship can be the downfall of any company.
A poor decision, while unfortunate, can set you up for a civil lawsuit by your investors who will come for your personal savings as well.
As a solopreneur, you most likely have poured most of your funds into the company and have the sole responsibility of generating revenue.
If met with an unfortunate accident or are incapacitated for some time, this can create a negative financial impact on your business – on top of hospitalisation costs.
This sets you up for a tough road to financial recovery, more so if you have just started out without any protection.
Whether these risks will be applicable to you will only be revealed with time. Regardless, it is undeniable to ignore the likelihood of risks happening to your business.
This can be avoided, simply enough, by transferring the risk to a trusted provider who can effectively manage such risks so that you can operate with a peace of mind.
To assess and find out how else you can strengthen your cyber security, download our free insurance checklist here!
Sleek can help you with your cyber security needs. Reach out to us if you would like to be covered and our team of risk management specialists will be in touch with you.