THE BUSINESS OWNER'S DILEMMA:

Ashley: Joe, we are really starting to get traction for our products across a number of industries.

Joe: Yeah, it’s pretty amazing. I think the interest has definitely exceeded expectations from when you launched the business 18 months ago.

Ashley: You’re right. I thought that we’d work mostly in oil & gas and maybe have some interest from some other heavy industries like manufacturing. However, over the last 6 months, we’ve been getting calls from healthcare companies, technology firms and even food services. It’s crazy!

Joe: We are in a great position to really grow and expand the business if we play it smart. We just need to be careful.

Ashley: I sense that you’re a little worried about all of the interest…what’s your concern?

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Joe: I don’t want to kill your enthusiasm, but these new industry clients have varying needs. Our products and services can be applied without much customization, but we may expose our company to more risk in industries that we do not fully understand.

Ashley: I hear you, Joe. Do you think we should slow down or avoid certain industries altogether?

Joe: No, I don’t think that’s necessary. We just need to do our homework so that we understand what we might be getting into with certain industries and customers.

Ashley: So a bit of due diligence and research?

Joe: Yes - but we need to be structured in our analysis. We need to understand how our risk profile may change if we supply to these new industries. For example, are there different regulatory rules that may impact our product? Does the client have strict, contractual service level agreements (SLA) that could harm us as a firm if we fail to deliver?

Ashley: I can appreciate what you’re saying, but we’re a small firm with limited resources. You don’t have the time to manage finance and risk. And we don’t have the resources to hire someone right now.

Joe: I totally agree! We are growing and our revenue is trending upward, but our next hire has to be an operations director to help us with production. For risk management, we need to consider external support.

Ashley: Can we really afford a consultant? Big firms are so expensive.

Joe: Compared to hiring a new employee, outsourcing is extremely cost effective. There is a smaller firm called Solomon-Joseph that specializes in this space. They will work with us to develop a customized, risk management support program that can range from a few hours a month to a few days per month. It’s the ideal solution for our current needs.

Ashley: Hmmm, I really like the idea of flexibility. Their model would enable us to focus on our core competencies while leveraging dedicated risk professionals to help us address our new exposure. Let’s see how they can help us, please schedule a meeting.