3 Steps to Help Reduce Business Risk

Small business owners wear many hats-often too many-and they place pressure on themselves
to get it all done. Free resources like the Women’s Business Center and mastermind groups
with peers help you to reduce business risk, leverage your resources and avoid blind spots.

The Women’s Business Center talked with The Study USA’s Tom Foley about the three key
components to navigate business challenges like the current pandemic and more.

Those key components are:

● Having a growth mindset.
● Recognize and reinventing.
● Managing cash flow.

Create a free LiftLearn account to unlock Tom Foley’s full webinar video and get a more in-depth
look at what steps you can take to mitigate any future business risks. Register here: https://entrepreneur.liftlearn.com/register

Step One: Working on you and having a growth mindset

Foley teaches that businesses must be passion-based and outcome-focused to succeed while
having a growth mindset. Focusing on your goals and your passions can make a drastic
impact on your business.

Stanford professor Carol Dweck conducted research on the differences between a fixed and
growth mindset and found that people with a growth mindset are more likely to learn from
mistakes and apply that learning to their lives and be happier.

Dweck found that people with a “fixed mindset” assume that their abilities are static and not
likely to grow or change, so they tend to avoid taking risks to fend off failure. While people with a
“growth mindset,” thrive on challenges and use them to stretch and grow.

Consider these questions to see if you need to expand your mindset:

● Are you ready to lead your company?
● Are you a challenger?
● Are you a creator?
● Are you a coach?

Being passion-based and outcome-focused can lead to empowerment for your business.

Step Two: Recognize and reinvent

It’s easy to get in a rut and just do the same things over and over again. While we should
always have our “heads up” and be recognizing opportunities and reinventing, the pandemic
has forced us to do so.

Below are a few probing questions to help you uncover the areas in your business that need to
be adjusted, grown and reinvented. This is something that should be done regularly – no need to
wait for a crisis.

● Who are your key partners?
● What are your business’s key activities?
● What are your key resources?
● What is your company’s value proposition?
● Who are your customers and what are their relationships?
● What are your revenue streams?
● What are your business costs?

The questions above will help you examine where you’re currently putting your time and effort,
and which activities are more profitable to your business. See if you can reduce time and money
in one area and double-down on other areas that produce a profit.

Step Three: Controlling your expenses and cashflow

Sharpen your pencil and dig into the details because you might have more money than you

Instead of staying up all night worrying about the worst-case scenarios for your business, take
action. Proactively make a list of the worst-case scenarios and solutions that can be enacted for
each one. Knowing that you already have a solution can ease your mind and become a
timesaver when or if these scenarios occur.

By identifying solutions that you can take to both conserve or generate cash prior to these risks
occurring, you will help to reduce emotionally-fueled decisions.

Although there are many ways to control your expenses, here are some main places to discover
your “hidden” revenue:

  1. Review Inventory management
  2. Reduce or stretch out the debt
  3. Reduce capital spending
  4. Strengthen and restructure your banking relationships
  5. Use your employee skills in different ways

The Women’s Business Center is here for you! Engage with our FREE resources that will keep
you up-to-date on new funding programs, tax provisions or other local measures. Become a part
of our community today!

Create a free LiftLearn account to unlock Tom Foley’s full webinar video! Register here: https://entrepreneur.liftlearn.com/register

Tom Foley and The Study USA

At The Study USA, they strive for gender parity and racial equity by empowering women-owned
businesses, minority-owned businesses, and the next-generation entrepreneurs through the
collaboration of academic partners, companies, and the community. They do not see
themselves as a location, but as a community. They believe in an inclusive business
environment. Through the collaboration of the full community – from startups to Fortune 100
companies – The Study USA connects business owners with programs, people, and
opportunities to help you succeed.

With the impact of COVID, they pivoted their strategy and launched a virtual marketplace,
bringing businesses together, virtually, to host Masterminds, engage in learning opportunities,
and promote business development.

With Foley’s experience practicing law, The Study USA has intentionally focused on
demystifying the legal hurdles to navigating a business – from near term challenges such as the
CARES Act to foundational legal issues.

If you are interested in joining The Study USA’s community- in-person or virtually, reach out to