TechAssure, the international nonprofit association of insurance and risk management experts for technology-related risks, has announced a new partnership with InsurTech company Indio. TechAssure members will gain access to Indio’s market leading software – designed to improve the client experience by eliminating redundancies, streamlining applications, and improving client/carrier communications. Read More
In the technology and life sciences industries there are small companies, growth companies, mid-size companies, small cap companies and large companies.
A small company can be a grow company by adopting their business practices. While every business is different, many characteristics are common with successful rapid growth companies.
Rapid Growth Companies Usually Take Risk Management More Seriously – Rapid growth companies aren’t afraid of taking calculated risks, but they often learn how to turn risk into opportunity and they do that better than their competition. That means that they before they jump into opportunities they calculate risk and are more aware of the potential consequences. Developing a corporate risk management approach at an earlier life cycle is more important for continued interest by investors and strategic partners.
Rapid Growth Companies are Usually Better at Business Planning – Rapid growth technology firms are always looking ahead in the marketplace and understanding the changing world, view and opinions. This strategy helps them consider and plan their exit strategies. As with any risk management program, it is helpful if you know where you want your organization to be in the next 1-3 years.
Rapid Growth Companies Know their Target Profit Margins – Rapid growth companies usually know their target profit margins. Most emerging technology firms recognize that operating on a low margin for a long period of time makes it difficult to accomplish growth goals. It is important to factor in your total cost of risk as you take steps towards your target profit margin.
Rapid Growth Companies Pay Close Attention to their Market – Rapid growth companies pay close attention to the economy and the views of their investors. If you stay isolated on a narrow part of the market, or have only one product, your companies runs the risk of being stagnant. Rapid growth companies know how to seek out new markets and develop new products and keep risk management central to those decisions.
Technology and Life Science firms are diverse in size, growth prospects and type of businesses. While they share some common characteristics, the rapid growth firms are the ones that drive news in a flat economy.
Contact a TechAssure member to learn more about how these companies are taking risk management and making it central to their growth plans.