At the beginning of any New Year it is natural to feel full of optimism and to seek opportunities to develop your business.

Planning to increase the success of your business will naturally involve taking some calculated risks, but if you never take risks your business could fail.

However there are some risks that occur without us noticing and it is these risks that small companies like Opticians need to manage carefully to avoid problems.

There are 4 main types of risk a company should plan for:

1. Strategic, for example a new competitor coming on to the market. It is important to take competition seriously and monitor what products they are bringing onto the market and what they are offering. If they offering different ranges of frames, are they better or cheaper than your range of frames? Keeping an eye on market trends and what the customer wants is key to a successful business.
2. Compliance, for example responding to new legislation. Employment laws and Health and Safety regulations change from time to time and some changes are mandatory with heavy penalties for non-compliance. Keep up to date with legislation through your professional body like the General Optical Council.
3. Financial, for example non-payment by a customer or increased interest charges on a business loan. Cash flow management is a key risk for the small business. Review your financial plans regularly and ensure you have reserve funds for difficult times.
4. Operational, for example the breakdown or theft of key equipment. Opticians should have all their specialist equipment insured but it is important to have a plan in place to cope with such emergencies. Also failure of IT equipment can cause major disruption even in the smallest company so again it is vital to review how you would cope in this situation.

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