Most small businesses rely heavily on the boss. That’s you and I. We may have great managers upon whom we can rely when we are away, but sooner or later, we have to be available to make decisions about the big issues.
However, accidents will happen, and therefore we need insurance, whether it is the sort for which we pay premiums, or our insurance is a common sense approach.
One of the hazards of running a small business (or should I say “challenges”) is when we are offered a really good project which is far too large or complex for us to do. It is beyond our current capabilities. We need to assess the risk to our business in taking that source of business on:
- Can we do it comfortably by engaging another business as a partner, assuming that is acceptable to the client?
- Is our insurance cover enough if the project goes wrong or if the client thinks it has? (We need to be covered for wrongful claims too).
- Can we cope with the stress?
If we can say “yes”” to all those questions, then go for it, because it will be an exciting development and something to talk about in pushing our business forward.
If our answer is “no” to any one of those questions, then we can decline politely and respectfully, and still have the opportunity to make a great referral to a bigger business who may reward us then or later.
It is wonderful to get an exciting new client, but it is honourable and sensible to decline when we know we just cannot meet client expectations.
Have you ever bitten off more than you could chew?