Recently, I had a conversation with a very dear friend of mine. He is undoubtedly an incredibly successful entrepreneur building multiple multi-million dollar businesses, using many of the search engines like yahoo and internet-based social media tools you’re acquainted with today.
One of the online tools he uses much to market his various companies is Google AdWords. So it came as a good shock when he informed me that they received a “Google Slap”. Getting a “Google Slap” hurts your reputation with Google, enables them to suspend your AdWords campaign, and hurts your search engine rankings. He’s not exactly sure why this happened but it brings me to today’s secret weapon tip, “One could be a very Dangerous Number to Your Small Business”.
The solution; Make sure you have backup plans in position for each area of your company or you’ll be “bankrupt” in a short time. In the example above, fortunately, my friend has several alternative forms of advertising which he utilizes, which generate considerable revenue of $’s. But you can see simply how much of a problem it might happen to be had he relied solely on this one method of advertising for his company.
Here are some more examples that affect look at:
- One major customer. This is difficult because major customers are most likely the reply to growing your business fast. However, I recommend diversifying your subscriber base whenever you can so losing one major customer won’t place you broke.
- One set of crucial data, documents, or records. Businesses that suffer a decrease in crucial data have a difficult experience recovering. Make sure you backup your entire data every night. Additionally, I suggest a different backup offsite. This protects you just in case you experience a hearth or other catastrophic event that destroys your onsite backup also.
- One key supplier. If you depend on one key supplier to provide products or services, you’re vulnerable. If that supplier were to go bankrupt or opt to discontinue the relationship for almost anyone of your variety of reasons, your business stops operating. Make sure you have backup suppliers to each key supplier you need to unnecessary risk.
- One service or products. If you rely on revenue in one product or service, consider diversifying into other potential revenue sources. If the one product or services you offer becomes obsolete or else you discover yourself to be competing using a large openly traded company determined to undercut your pricing, how will your organization survive? And;
- One key employee. Make sure to cross-train every employee. This ensures when an employee leaves, there is a backup able to handle their tasks within the interim until a replacement is located. If you simply have one employee, you will be the backup.
There are many more examples I can list that affect all businesses and several which might be specific to a particular industry or segment. But the five examples above should provide you with a good starting point to analyze every facet of your small business to avoid that particular event from ever ruining your enterprise.