Congratulations on building your business health dashboard! Now let's tackle the final piece: protecting your local business from unexpected risks that could derail everything you've built in your community.
Every business faces risks, but smart local owners prepare for them before they become emergencies that affect their customers and neighbors.
Engagement Message
What's one unexpected event that could seriously disrupt your ability to serve your local community?
Business risks fall into three main categories: financial risks (running out of money), operational risks (things breaking or failing), and market risks (losing customers or demand).
The good news? Most risks are predictable and manageable with simple preparation, especially when you understand your local market.
Engagement Message
Which category sounds most threatening to your community-based business right now?
Let's start with a simple risk assessment. List your top 5 business vulnerabilities - things that would hurt if they went wrong.
For example: losing foot traffic due to road construction, equipment breaking during peak season, key employee quitting before the holidays, local supplier closing, or neighborhood demographic shifts.
Engagement Message
What's one vulnerability that keeps you up at night as a local business owner?
Financial risk mitigation is straightforward: maintain your cash runway, diversify income sources within your community, and have a line of credit arranged before you need it.
Remember that 6-month cash runway from your dashboard? It's crucial for surviving seasonal downturns or local economic dips.
Engagement Message
What's the first action you'd take if foot traffic fell 30% for three months?
Operational risks require backup plans. If you're a neighborhood bakery, identify backup suppliers within driving distance. If you're a local service provider, cross-train team members or have relationships with other local contractors ready.
