During the course of your business, you always incur a threat to your business. Assume this threat, so you will anticipate and create a solutions to negotiate around them. Having a plan for any situation which will happen is the practice that every businessman or investor needs to be updated constantly. Often the analysis of threats include looking at how you mitigate them by:
#1. Be careful and avoid the risk of occurrence
#2. Understand how to minimize exposure to the threats
#3. Be vigilant to detect the threats early
#4. Development an emergency plan
#5. Develop a plan to hedge against the threats
Ask the question: Is this a threat, how can I turn it to an opportunity? Lokk at the threat as an opportunity can move the leverage in your direction and provide you a competitive advantage.
In the early days of mutual funds many brokerage companies were reluctant to sell mutual funds for fear they will lose the competitive advantages of recommending stocks. Charles Schwab however, only a regional broker at the time, saw it as an opportunity to partner with a fund families and allows the customers to buy mutual funds through Charles Schwab instead of having multiple accounts for brokerages and investment funds.
other companies instead created their own investment fund precluding customers to buy only their proprietary products. Charles Schwab management was smart enough to view this “threat” as an opportunity and now what was a smaller regional brokerage firm is now has a $ 1 trillion under management juggernaut.