Before the Rain

Startups and entrepreneurs often face risks and unforeseen events resulting in business failure.

The reason we created XAP Corp is to help business owners navigate the dangers by making better business decisions.

Just like stock-market crashes and earthquakes, we know they will happen. But, we cannot predict where and when. It’s just a question of time.

Does anyone want to start a business, work hard and achieve some success, and then tragically see everything lost? It’s a very common story. Bad things happen, usually totally unexpected, resulting in financial loss and unimaginable stress.

I’m reminded of a quote from the movie Spy Game (2001) starring Robert Redford and Brad Pitt. CIA agent Nathan Muir (Redford) says: “When did Noah build the Ark? Before the rain. Before the rain”. The lesson being, as an Agent, you need to be prepared.

So, when is the best time to design and plan your company’s organisational structure?
Answer: Before the rain.

When is the best time to conduct research and do your homework to understand the market and customer needs?
Answer: Before you waste money on a failed campaign.

In business the ‘crash‘ is when you get sued for a large claim or when your biggest customer defaults on payment or when you are hit by a pandemic.

There are so many potential risks, twists and turns in business. It’s the reason why many businesses fail. The good news is that you can protect yourself.

You need to prepare, and you need to have asset protection measures in place before it rains. Prevention is definitely better than cure when it comes to managing business risks.

In the early days of Alibaba, Jack Ma was asked about what company structure he had in place. He replied: “we have a domain name and a website”.

That’s how most entrepreneurs get started. They are so busy focused on product launch, sales and marketing, some important details get neglected.

Jack was fortunate to get good corporate advice and he soon had a company incorporated in Hong Kong structured to take care of his 18 Co-founders.

If you have a company, that’s great, as you are one step ahead of Jack Ma! But, you need more, a lot more than a simple company structure to protect your assets.

To learn more check out why every entrepreneur needs a Firewall. The firewall is your ‘Ark‘ to protect your assets.

My best advice when is comes to asset protection? It’s the same advice I give when it comes to fund raising. Get advice and put things in place before you need it.