Risks: does your business have immunity? Competition risks (VIII)

Risks: does your business have immunity? Competition risks (VIII)

Rolandas Mištautas, Head of Law Firm KONSUS LEGAL

Relaxing on the basis that your business is performing well today is good for short breaks. If you have a strong, long-term perspective, you also need to take into account the so-called competition risk.

It is not for nothing that business philosophers like to compare the nurturing and development of a business to battles, battles and fighting in the broadest sense: relaxing too quickly or for too long can have a negative impact on your cherished activities.

Every company must continuously seek new ways to improve and develop that are not discovered or not well exploited by competitors, and not be limited to the opportunities offered by, for example, one market. Getting out of what psychological scientists call the 'comfort zone' requires courage, determination and perseverance. It also requires a clear understanding that the smaller the market, the greater the competition.

The single market of the European Union offers great opportunities to post your business anywhere in the EU. In addition, it is now quite common to post your business even to non-EU countries.

There are many benefits to posting business to other countries:

1. Gives a business enterprise or company mobility.

2. There is more scope to disaggregate the risks in the business environment, thereby successfully mitigating the potential threats they pose.

3. The accumulated business experience from different countries is successfully integrated into the company's internal culture.

4. The company becomes independent from the specificities of one market and the economic-legal mentality of one market.

While business risks can never be eliminated completely, proactive planning can help anticipate and mitigate them. Develop a risk management policy, in line with the nature of your business, and take the time to do so. Act! Awareness is the key to saving money and time, while protecting the trust, reputation and customers you have worked so long and hard to build.

Updated: 2023-03-31