Developing a risk managed business

Pavlo Phitidis presents the Nedbank Business Accelerator podcast series.

Episode 5/ 8

Putting all your eggs into one basket is not a wise business strategy. The environment of business today is so unpredictable, one stumble and you trip and fall – all your eggs broken. A risk managed business is one that has multiple customers, that enjoy being served by your business and are found in different sectors. Should one sector struggle, the customers in the other sectors keep you going. It’s also business that has no customer responsible for more than 10% of your revenues. Should they stop using you for whatever reason, your business continues. Imagine if they were responsible for half your revenues? With a risk managed revenue profile in play in your business, it makes you a price maker, rather than a price taker in the event of a sale and has a huge impact on your business valuation.

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