Business Risk: How An Executive Coach Helps You Mitigate Risk
You may think that between your accountant and your attorney, you have all the advice you need. But outside the rigors of meeting your bank covenants, filing your tax return or meeting the terms of a contract, how well do they know your company? These specialists come from a point of view forged by their profession. But they don’t sit in your seat: you do. These folks will have a big role to fill once you have a strategy in place, but before that, you need to create the strategy that will guide them on in their roles into achieving your objectives. For that, you have a lot of questions to cover.
To prompt you to assess business risks and opportunities for your organization, (and the risks of either meeting or ignoring these), consider how an experienced business coach can help you not only to focus, but to implement effective strategies and contingency plans.
Ask yourself, “What are the business risks I need to consider and where do they come from?”
OUTSIDE BUSINESS RISKS:
- Access to capital: Building primary and secondary banking relationships, equity sources, risks in a rising rate environment, risks associated with a change in the economy.
- Dependence on Key Customers: Assessment of customer revenue concentrations, credit risks or failure of customer’s business, change of customer business focus, loss of a key customer.
- Product Dependency: Impacts of emerging technology and an ability to support needs, regulatory or technological destruction, employee capabilities to support changing trends, loss of product line.
INTERNAL BUSINESS RISKS:
- Loss of key employees: How do you protect yourself from key employee departure and their solicitation of customers, or other employees? What are you doing to train replacements for aging skilled employees?
- Business Intelligence: What are your key performance indicators, including leading not just lagging or historic indicators? Know where you are going before you get there, when it is otherwise too late to fix.
- Financial Planning: Effective cash flow projections and forward looking projections, customer profitability and trend analysis, stress tests for economic events or other risks.
Executive coaches work with corporate and business leaders to identify and build actionable plans for both business risks and opportunities. They help to construct these plans using an outside and unbiased assessment of a company’s strengths and weaknesses. It is important that they are provided with as much information and insight as possible in order to add maximum value to the planning process.
Consider finding an experienced executive coach today: the advice of a coach who has been where you are today can get you out of “working in the business” and help you start ”working on the business”. But to get there, you’ll need a plan. You owe it to yourself and your stakeholders to get experienced advice from an executive coach.