Project risks are when your deliverables are hit with unexpected events, most the time taking your project deadline on a little (or sometimes long) detour.
As a small business owner, risks are unavoidable, but how you handle detours is how your business can reach success.
There are a variety of ways projects can get derailed and cause you to spend more than anticipated.
Fundera has compiled 22 of the most common examples of project risks that could threaten your project timeline. But don’t fret, we have also added helpful tips to manage them.
This infographic has highlighted the top eight risk category threats for business owners.
1. Scope risks
Scope risks are events that threaten project objectives, deliverables, or timeline. This is the most common project risk of business owners. Even with that being said, there are some ways to go about reducing the odds of this happening.
Make sure you and your team and creating concrete goals and task dates for each phase of your project. This will ensure your team doesn’t try and hit things out of the park by adding additional tasks or taking any extra free time on the tasks on any scheduled projects.
2. Cost risks
This type of risk is the most well-known as it has the biggest effect on businesses and their financials. Staying within budget is crucial for business owners to ensure you aren’t going into the red while meeting your client’s expectations.
Have your team stagger your work by moving non-essential tasks to different weeks, months, or years to best suit your businesses project focus. Along with that, stay in touch with your expenses by tracking them on an app or spreadsheet to double check your project’s finances are still in the green.
3. Time risks
If you and your team think there is enough time to complete your project comfortably, or even with a touch of time to spare, you most likely aren’t scheduling your tasks effectively.
Have you or your management team take on a couple more projects or simply wrap up projects sooner rather than later if you think there is too much time to put towards one given project. That way, if something were to take a turn for the worse on a deadline, you were allocated enough time to take control and get it back on track.
4. Technology risks
Technology can get confusing and frustrating at times. Studies even show that only 30% of IT project implementations are successful. Keep your projects in the green by scheduling extra time to brace yourself for implementation delays.
If you have the budget for it, or are wanting to take out a small business loan, hire an IT team that could easily fix any complications that may occur along the way.
5. Resource risks
Your team is one of the key factors in getting your business goals met, but they aren’t in control of the resources that are provided to them or what life may throw at them. Make sure you are able to provide what is needed for your team’s job and satisfaction. Here are just a few ways you can show your team and clients you are thankful for all their hard work and dedication.
6. Communication risks
In a world filled with technology, sometimes effective communication gets put to the side. Make sure your team is communicating any delays or shifts in any given project to ensure the reallocation or changes are being made to best suit your deliverable. Along with that, foster a positive team working environment.
7. Procurement risks
You most likely are relying on other businesses to meet their goals too, in turn, helping you meet yours. To meet your deadlines and get the most out of your investment into another company, make sure you are checking references and listening to the good and bad before signing a project contract with another company.
There are many different things that could happen through the pipeline of any project conducted. Whether that be natural disasters or legal risks, always take extra precautions with a disaster recovery plan or attorney one phone call away if needed.
If you are a small business owner, taking risks can be fun as long as you learn more from your own actions rather than being told what to do. In these cases, make sure you are ready to take on anything that might be put in front of you when promising a client’s specific deadline.
This infographic was created by Fundera.