How to Reduce Uncertainty as a Solo Business Owner

Uncertainty is unavoidable for solo business owners (and all business owners, really). Whether it’s worrying about next quarter’s revenue, employee turnover, or an expensive investment, it’s impossible to know for sure that everything will turn out well.

“I know that,” you’re thinking; well, don’t stop reading quite yet. It is possible to manage and mitigate uncertainty to the point where it doesn’t affect your well-being.

How? By maximizing clarity and safety within your business.

Clarity means you’re informed about your environment, so you can see problems coming and avoid them before they escalate.

Safety means you have confidence that even if something goes wrong, you’ll be protected from the worst possible outcomes.

Imagine this: You’re driving at night in an unfamiliar neighborhood. Your headlights and GPS directions give you clarity, and your seat belt and auto insurance policy give you safety.

Something bad could still happen. You can’t control the other drivers, an unexpected road closure, or a deer running in front of your car. But your headlights and GPS help you find your way home, and your seat belt and insurance will protect you physically and financially if a problem does arise.

So how do you build clarity and safety into the daily operations of your business?

Creating More Clarity in Your Business

To gain clarity, focus on facts, not assumptions or anxious thoughts. Whatever your situation is, ask yourself: How can I find out what’s really happening here? What does the evidence show?

Here’s what this might look like:

Know your financial facts.

A lot of uncertainty stems from money worries. Understanding your finances will tell you if there’s something real to be concerned about. Simple financial reports (profit & loss, cash flow forecast, etc.) provide a ton of clarity. Learning how to generate and read these reports is an absolute must, and it’s not as complicated as it may seem.

Look at what’s working for your peers.

It’s helpful to learn how other entrepreneurs handle common challenges. You can connect with business owners you know, or find podcasts, newsletters, and books that give you a look behind the scenes at finances, hiring, marketing, you name it.

Reflect on times when you’ve handled unexpected events.

Think about the wisdom you gained from those experiences. When you’re resourceful & resilient in the face of a challenge, you strengthen those muscles for the future and you’ll be ready to use them again.

Making Your Business Feel Safe

To create safety, take control of what you can. Ask yourself, what is within my control and what isn’t? Here’s how to take control of your safety when the future is unknown:

Create a plan to achieve your goals.

Knowing what your goals are, in detail, and having a plan to reach them is the equivalent of using GPS for your business. Without it, where are you going and how will you get there?

Have an emergency fund for your business.

Knowing you can cover an unexpected expense or withstand a business interruption is immensely reassuring. Aim to have 3-6 months of fixed business expenses saved.

Protect yourself and your assets with insurance (and contracts, if applicable).

Mitigating risk is essential to business survival, and insurance & legal contracts are two of the most common methods. Sleep better at night knowing that you’re protected from natural disasters, theft, bad-actor clients, and other problems.

Get help from an expert when you’re stuck.

As a solo business owner, it’s not reasonable to expect you’ll know exactly what to do in every situation. But it is your responsibility to recognize when you need help and find out how to get it from a reputable source.

We can’t completely avoid uncertainty and the stress it causes (sorry!) But if you use these tactics when uncertainty is rising, you have a better chance of counteracting it before it hurts you and your business.

Cover image from Unsplash.