Many of our members at Housesitmatch whether they are homeowners, housesitters or digital nomads run businesses. It’s a common attribute we have found. And many of them perhaps like you dear reader will be looking at the rising cost of living, projected inflation figures and wondering how to manage the risks. If you are running a business from home then you need to read this article. Here we offer top tips on how to manage the risks in a challenging economic climate.

Running a business from home? Manage the risks

The majority of businesses will fail in a challenging economic climate. This is just a fact of life and fits neatly into the law of averages. On average, most will fail so that the few can succeed. This is why there aren’t ten thousand different variations of Amazon online. Are there other companies to buy from? Sure, but only a few rise to the top of the food chain. So, why do businesses typically fail? Well, there are lots of reasons why this can happen. It can be due to changes in the financial situation. Or, it might be a problem with reputation. That’s why it’s important to know how to keep your business alive and kicking by dodging some of the common pitfalls that can plague a company. 

You need the correct funding

If you are ever going to see success in business, you have got to have the correct funding. Sometimes, you start with one source of money, and then you change when your business is established, and there is absolutely nothing wrong with this. The only thing that you need to do though is to make sure that you have a constant, correct, and stable source of funding as often as possible when it comes to your business.

We recommend that you have a full-time finance professional on your side to keep everything in the green. Ideally, you want to look into someone, or indeed a service, that understands all there is to know about strategic commercial asset management, and all things related to finance. Money is important in a business, and you’re not going to be able to see success if you are not managing this correctly, or getting a stable source of income to rely on.

If the team are letting you down

Building a strong, reputable business means you need to employ the best people to work for you. If you have individuals who don’t pull their weight then you will struggle to stay afloat. It is all about who you hire and their skills, experience, and attitude towards work. When you send out the job advertisement you need to specify the type of person you want on your team. You can do this by stating the skills, qualifications, and relevant experience you want them to have. For example, a school wouldn’t hire a teacher who had no qualifications or experience. 

Customer service is key

If you think about it, what does every business have in common? Customers who use it. Without these customers then your business is in danger of shutting down due to a lack of sales. In order to keep these customers loyal, you will need to do everything you can to get them to stick around. It can be a bit of a minefield to know what your customers want as you are not a mind reader. However, one thing that most people want and like is great customer service. 

If you employ a customer service team within your business then make sure they are highly trained and clued up on every type of person they could be dealing with. If your customer service team is helpful and makes customers feel wanted and valued then they are more likely to come back. You could also install a chatbot on your website. Chatbots are useful because they will provide high levels of engagement instantly.  

Another point to consider here is that customers and clients absolutely adore chatbots. They prefer them compared with speaking to people on the phone or even by email. Chatbots are also becoming more advanced each year and can answer queries or address specific pain points. 

Marketing can’t be forgotten

It’s worth remembering marketing when you are working to keep your business alive. Without the right type of marketing, your business will always be dead in your respective industry. You might think that this is just a matter of hiring the right marketing solution. However, this is not the case. In reality, you need to work hard to ensure that your marketing is unique enough to stand out from your various key competitors. 

For instance, you may want to explore guerrilla marketing tactics. In doing so, you can ensure that your promotional strategy feels more like an event unto itself. 

Work on your website to achieve

Your website is the digital front door of your business. It’s the first impression that most customers will receive of your business. The reality is that most websites will fall short in a variety of ways. For instance, security needs to be a top concern for you because it’s a top concern for every client that you are trying to win over. If you have the right security systems in place for your business, then your company will always be viewed as more professional. 

What risks are worth taking?

It’s difficult to decide what risks are worth taking in business, but you’re never going to manage to see results if you take none. Your business is not going to be able to advance beyond what it is right now if you are not taking risks in certain areas. Most people avoid risk like the plague because it has the potential to damage your business, but what you have to remember is that it has the risk to build you up further as well. 

It’s hard to decide which risks are worth taking, but that is why you have advisors for such things. You can have financial advisors for the money side, business managers for the business side, and any other help that you think you are going to need. 

Running a business from home in Summary

We hope that you have found this article helpful. Running a business from home can be a challenge. Hopefully we have helped you to see some of the things that you could be doing to keep your business healthy. This is not the easiest task to achieve at the best of times. So when you throw in any kind of trouble it becomes pretty difficult. If you take the right measures now, then you don’t have to be in a position later down the line where you are worried about how you’re going to keep your business’s head above water. Take the advice above, and things should be okay.

FURTHER READING ON RUNNING A BUSINESS FROM HOME

Beginners guide to starting an online business

Dog walking business essential software to consider

Running an international business – A note about debtors