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Even with the proper planning and risk management, managing a large business can be very unpredictable. There are always issues that can arise that are not under our control. This is why entrepreneurs need to manage their uncertainty in an effective and profitable way.

Due to the current political situation of the world today – Covid-19, Brexit, supply & demand issues, it is essential that entrepreneurs understand how to manage their uncertainty. Here are a few tips on how to do so.

Be Flexible

Uncertainty can often require that decisions are made without the whole picture in hand. In other words, without all the essential information. This is why entrepreneurs must build flexibility into their plans and manage their uncertainty in a manner that’s both profitable and effective. One of the easiest ways to do this is to alter the course of your sailboat if the wind changes.

Communicate, Communicate, Communicate

In times of uncertainty, leaders can play a vital role in building trust by providing relevant and credible information. They can also demonstrate their humanity and show how they believe in the principles of transparency. Leaders who communicate effectively with their employees are more likely to build trust and increase their confidence in the company.

Make Plans for the Worst

Don’t let the fear of what might happen to your business keep you from making informed decisions. Instead, start by going into the unknown and asking yourself what the worst could happen to your company. This will allow you to visualize the various scenarios that could affect your business. Use scenario planning to think through your options and develop a strategy to manage your uncertainty.

Before you start working on a strategy to manage your company’s uncertainty, consider the various risks that could affect the business. Using a combination of probability and impact, you can come up with a list of potential risks that are most likely affect the company. These are then categorized into low, medium, and high-risk categories.

Manage Stress

Many of the most successful entrepreneurs have acknowledged the high levels of stress that they experience when it comes to running a business. Despite the success that they have experienced, it’s still not a good idea to succumb to this type of stress. Instead, entrepreneurs must take the necessary steps to avoid burnout. One of the most critical steps entrepreneurs can take is regularly blocking out the background noise and preparing for the unexpected.