What do you do if your business risks seem overwhelming?

S.W.O.T. is wonderful. Unpacking it can be difficult, but it removes the dog-eat-dog problems of the #1 risk in business SCALING - upon reaching the first scaling stage after having done the already nearly impossible in achieving market traction and market share in Stage 1: being blindsided by the internal and/or external SOPs being in any way off. S.W.O.T. all of your SOPs and new scale-up SOPs. You'll also get eaten alive if you were merely an SME whose SME successes got you some market traction and market share in pilot/beta and Stage 1 but you didn't and don't have the following: (1) a comprehensive business plan, (2) a feasibility market study, and (3) strong competence in HR Planning/Mngt and Strategic Marketing Planning/Mngt.

??? When business risks loom as large as mountains, it's time to don your explorer's hat and assess those risks. Map out the terrain, identify the slippery slopes, and plan your path with care. It’s like being a weather-savvy hiker—know when to press on and when to seek shelter. This way, you turn the overwhelming into something manageable. Just remember, even the most daunting peaks can be scaled with the right preparation!

Try exercising more. Getting more sleep. Eating healthier. Drink more water during the day. In most cases, anxiety and the realization of risk are in your mind and are nothing more than dehydration, lack of oxygen to the muscles and brain and lack of quality sleep.

Look at how different risks in your business might affect each other. For example, if people start buying less of what you're selling, how will that make your money situation tougher? Or if a new competitor shows up, what does that mean for your customers and income? Understanding these connections helps you see the bigger picture. Then, keep checking on these risks as things change in your business and the world. Learn from what happens - what helps and what doesn't - and adjust your plans as you go. This way, you're better prepared for surprises and can even use challenges to improve and grow your business.

?? If business risks are raining on your parade, it's time to open up the umbrella of mitigation planning. Strategically place those sandbags before the floodwaters rise. This way, you’re not just reacting to challenges; you’re anticipating them. It’s like knowing a storm is coming and having hot cocoa ready—it won't stop the rain, but it sure makes it more bearable!

Risk-taking is part of building a sustainable and resilient business. But don't risk its entire future on something without a backup plan. Build up a cash reserve, and maintain alternative streams of revenue to reduce this to a carefully measured risk instead of a gamble. Even if you're not in risk-taking mode right now, it's ALWAYS wise to reinvest profits to build that buffer, because the unexpected can and will happen, and cash flow is the lifeline which will see you through.

All-or-nothing thinking can be stressful and hurtful in entrepreneurship. In taking risks, it`s not all or nothing. Find your sweet spot: - what risks are necessary to reach your goals? - what are the risks you are comfortable taking? For how long? To what extent? - what do you need to have in place to take those risks? Also, it`s not forever. Create a well-established frame that enables you to explore: - what are the risks, exactly? - for how long are you willing to take that risk? - under what conditions? - what will you do if this risk occurs? - if it doesn`t, what does this allow you to do next?

Experience is being able to recognise the same mistake every single time you make it. Obviously, I'm being sarcastic! Mistakes are painful, and sometimes crippling. You should always be on the lookout for pitfalls and learning ways to avoid them altogether, if possible. If you engage with someone who has travelled the same road before, you greatly minimise these risks. They will know the common challenges, and how to avoid them. And if you do fall foul of them, they will have good practical advice on how to recover. You learn the most from your mistakes, but it's preferable to learn from the mistakes of others.

Identify potential risks, assess their potential impact, and implement mitigation strategies. Regularly review and update your plan to stay ahead of emerging threats. By combining continuous learning with proactive risk management, you'll be better equipped to tackle challenges and safeguard your business's success.

To properly analyse and mitigate risks, you need to fully understand them first. Our own views are always limited and biased, so don't assess risks on your own. Adopt a formal risk analysis framework like a SWIFT analysis or a probability/consequence matrix to bring some structure, foster deeper thinking and understanding, and reduce the changes of overlooking hazards.