Chapter 1: Understanding Your Janitorial or Cleaning Service's Business Risks
Owners of janitorial and cleaning services businesses can prevent devastating loss by creating a risk management plan. But before you can effectively avoid risk, you have to first understand the threats to your business. This chapter defines the term "business risk" and introduces you to areas of vulnerability in your cleaning business.
What Is Business Risk?
Small-business owners face risk every day, but what does "business risk" actually mean? Think about it this way: every action you take can result in either a positive or negative outcome for your business. "Business risk" is the potential for a negative outcome.
In terms of your business, every negative outcome can be summed up in two words: lost profits. So you can think of a business risk as anything that has the potential to cost your business money.
As you know, some actions are "riskier" than others. Many risks can be reduced with prevention techniques. But sometimes, forces beyond your control — think Mother Nature and the whims of strangers — threaten your business. That's why business insurance was invented — to shoulder the cost of losses that are beyond your control.
But before you can choose the risk-mitigation techniques and insurance policies that protect your cleaning service, you need to be able to identify your business threats. Read on to learn more.
Next: Chapter 1.1: Do You Know Your Cleaning Business's Vulnerabilities?
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