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Home/Blog/What’s the Risk? What’s the Chance? What’s the Cost?

Recently there was a Prozone Facebook Page post that highlighted a problem that people may face when doing any sort of Laughter Yoga Training. This prompted much conversation around the “risks” involved with ensuring customer satisfaction and payment. Whenever you assess any sort of business risk you must always ask your self “What’s the chance?” AND “What’s the cost?”

In business (and life) there are risks everywhere. In business however they usually incur a financial penalty. After all, when something goes wrong someone has to pay. I always had trouble getting across to my staff that every time something went wrong the business lost money, and by default so did they through the ability for me to pay them benefits and increased wages. This was a war of words that I’m not sure I ever won ha ha ha.

So which risk do we focus on? Easy. The one that is “most likely to happen” (chance) that has the “highest financial penalty” (cost) attached to it. What we need to do is analyze the risks, place a percentage ratio against each one as to how likely it is that it will happen, and then place a cost in $’s against that. Once you have done this you will know exactly where you need to start.

Here are some tips to help you reduce business risk.

1. Contracts. Whenever you do business with anyone you may like to establish a Contract with them. This is a legally binding document that both parties need to sign. Lawyers make lots of money by establishing these … and then by fighting them in a court of law.

2. Memo of understanding. In most cases though a memo, or letter, of understanding will be sufficient. This can merely be an email that clearly states the details of the agreement that we have entered into, and especially expectations of timing, costs, and payments etc.

3. Set intentions. At the start of whatever it is you’re doing state your intentions. Be clear about what you intend to do, and what they will receive.

4. Gain intentions. Leave nothing to chance. Make sure that they are clear about what they would like to receive and make notes on this. As the training continues refer back to these notes and ensure that you’re both on track. Signing off on these at the end is a strong way to finish.

5. Get payment up front. “He who has the money has the power”. Wherever possible ask for full payment up front. This minimizes the risk of disputes escalating over what are often the most minor issues. Build this into your Memo/Letter of Understanding and you’ll be pleasantly surprised how many people just do it because you asked. This also saves time later in having to chase up money, and improves your Cashflow.

If you have any further questions regarding Business Risk then please feel free to email me at mervneal@laughteryoga.org at anytime. Any recommendations for future topics are also appreciated.
Merv Neal is a Laughter Yoga Master Trainer and the CEO of Laughter Yoga Australia and New Zealand. He has successfully owned and operated his own businesses for more than 40 years. He has created a Laughter Yoga Business Training Program, as well as the Business Mentors and Coaches Program, to help others to take Laughter Yoga to commercial organizations, and/or to create a Laughter Yoga business of their own. More information can be found at http://www.laughteryoga-australia.org