The world of business is a risky one. The success of your business, as well as its failure, often hinges on the right decisions at the right time.
Useful Economic Laws
Keeping your business safe and sound requires you to make informed decisions with a risk-averse strategy at all times. Let’s take a look at 2 simple economic laws that will keep your business safe and sound.
Produce only what You Know People Want to Buy
Let’s say your competitor is offering a product that’s similar to what you produce. If you start producing that same product, you’re likely to cannibalize your existing business. Why? Because you’re giving your existing customers a choice between your product and the one you just started producing.
And if they decide to go with the new version, you’re in trouble. The best way to avoid this is to produce only what you know people want to buy.
Always have a Safety Net
Every business will come across some sort of a risk at some point in time. It could be a product recall, an economic downturn, or increasing competition. No matter what the risk is, it’s important to have a safety net in place.
You can do this by having a healthy cash reserve. You should have enough money to sustain your business for at least six months.