By All Means, Mitigate Key Man Risk - Biztorials

By All Means, Mitigate Key Man Risk

key man risk

One major reason (amongst others) it is difficult for business owners and founders in Nigeria to establish sustainable and effective systems/structures is KEY MAN Risk.

The core of the venture is centered around one man without whom far too little or nothing happens. While this is the case with many of us who have been trying to build something from ‘nothing’, we must desire and work at creating systems that can run even without us. Key Man Risk is often a consideration even for big time investors.

What happens to your clients’ projects if you are indisposed for an extended period of time for any reason? Asides that, as you aim for more clients, you surely will need help, not just in terms of hiring people, but at the decision making level. Otherwise, your employees will all go home once you are no more available. Some day I will push the discourse further into the subject of corporate boards.

Yes, there are issues of distrust and poor commitment with some persons that you bring on board your venture, but there are ways of dealing with those issues, find the approach that works for you and adopt it.

The question you must keep asking is, can the venture run without you? Can I sell it off (even if you don’t intend to) and it keeps running well? By all means, mitigate key man risk. It draws investor, bigger clients, and gives your venture a solid base.

Don’t just desire to be like Google, Coca-Cola, Facebook and the rest, constantly seek to think and act like them.

About the Author

Maple Dappa
Maple is the CEO and founder of Mapemond Resource and Fayples offer a rare and lovely array of both affordable and high-end wares, sourced from international brands of various countries, differentiated home brands, and concessions.