Growing your business will involve risk. As a smart business owner you will want to:
- Understand the risks
- Minimise risks
One of the ways you can understand better your business risks is by reviewing your business using the Ansoff Matrix.
The Ansoff Matrix:
Assessing risks using the Ansoff Matrix:
- Determine existing products (or services) and markets being served – Low risk
- Review growth opportunity – is it 3, 4 or 5 below?
- New product to existing customers – Medium risk
- Existing product to new customers – Medium risk
- New Product to new Customers –High risk
A further way to minimise your business risk is to prepare a Financial model to forecast your business, this enables you to run different scenarios and understand the impacts on cash. See our page on Financial Modelling or contact us for more details
Contact vfdnet for a no obligation discussion. vfdnet Finance Directors have extensive experience of working with owners and managers (on a part time or Virtual basis) to produce professional plans, plans which have successfully backed applications for Small Firms Loan Guarantees, Bank overdrafts, business angel investments and grants.