In the ever-evolving world of Virtual Assistance – just as in any business – being prepared for the unexpected is not just wise, it's essential.
At VA Institute we absolutely advocate for all VAs to develop solid backup plans. Yes, we believe in being optimistic while having a solid contingency plan in place, but as the saying goes: “Expect the best, plan for the worst, and prepare to be surprised”.
Let’s dive into some of the key strategies we recommend to assist you mitigate risks in your VA business.
1. Master Your Finances:
The lifeblood of your business is its financial health. Use software tools like Rounded, Xero, or MYOB to track your income and understand the ebb and flow of your finances. Remember to set aside money for taxes and ensure that you regularly invoice clients to maintain a steady cash flow. This proactive approach will help you navigate the natural peaks and troughs of business.
2. Know Your Rights:
Understanding your rights as an independent contractor is crucial. Ensure your contracts are clear on these rights, and other essentials such as payment terms, enforce them strictly. Don't let overdue payments slide; your financial stability depends on it.
3. Prepare for the Unexpected:
Expect the unexpected and plan for it. Create Standard Operating Procedures (SOPs) for all client work, ensuring continuity in emergencies. Keep your insurance policies, like Professional Indemnity, Public Liability, and Cyber, up to date. And don’t forget to inform your home insurance provider about your home-based business – this is part of your duty of disclosure.
4. Guard Against Burnout:
Burnout is a silent risk that can creep up unnoticed. Set and respect your boundaries to maintain a healthy work-life balance. Use tools like scheduled email sending and clearly communicate your availability to clients. Remember, respecting your boundaries ensures your clients will too.
5. Never Stop Looking for New Clients:
Always be on the lookout for new clients. A smart way to manage client flow is to collaborate with trusted subcontractors. This approach provides a safety net for times of client attrition and keeps your business agile and responsive.
6. Plan for Your Future:
A clear business plan with goals and strategies for at least the next 12 months is vital. Consider your long-term vision, including any transition plans. And definitely don’t neglect your personal financial security – contributing to your superannuation is as important as your immediate income.
Risk mitigation is about preparation, understanding, and strategic planning. By implementing these strategies, you're not only securing your business but also paving the way for sustainable growth and success. Remember, at VA Institute, we're here to guide you through every step of your VA journey, ensuring you're equipped to handle whatever comes your way.