July 15

External Factors That Affect Business Finances

There are many ways that your business can be affected by things that you have no control over. External factors that influence your business usually can’t be stopped, but you can still be prepared for them. If you’re aware of some of the most important factors that can have an influence on your business, you should be able to create a strategy that will help you to navigate any big changes that could come your way.

The Economy

As much as you might like to, you definitely don’t have any control over the economy, but it can have a huge impact on your business. However, you can prepare for rocky economic times. This can include using a range of techniques, such as diversifying your business so that you’re not reliant on fair-weather conditions when your product or service is in demand.

Government Policy

Some larger businesses might be able to influence government policy, but most business owners don’t have much say. A change in the law can make a big difference to your business. It could mean you have to start doing things differently in order to comply with the law, which could affect you in many ways. The best way to be prepared is to stay up to date with politics and potential changes.

Natural and Man-Made Disasters

Both natural and man-made disasters aren’t things you can prevent, apart from any man-made disasters that your business could cause, of course. These disasters can cause long-term effects, but it is possible to protect your business from them.

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