Title - Business risk Tags - risk business profit diversify businessmodel
The more net profit you produce, from the more diversified buyer and sourcing base, the less risky the business is.
So to de-risk a business, produce more net profit, diversify the markets you serve, and diversify the ways and places that you acquire customers.
You can also de-risk by making the business model more sophisticated 202210110741. For example, by selling unconverted leads.
Of course, the inverse is also true.
The less net profit you produce, the riskier the business is.
The fewer people - in the fewer markets - that you serve, the more risky the business is.
The fewer sources of clients that you have, the riskier the business is.
And a one-and-done business model is much riskier than a sophisticated model.