What smart businessmen do

1.  Have a strategic plan that includes risk assessment

This needs to be in place when starting the business. What equipment and assets will you require to achieve the objectives towards your dream? Resources will be required – financial resources, human capital and certain assets depending on the kind of business you are in. When you set up your business, there are certain risks involved with all these aspects, because you will have contractual relationships with the stakeholders – be it employees, the people you are supplying or your suppliers. Map them and find out what legal obligations you have to them, to make sure you fulfill them and avoid financial loss.