state the different ways in which an entrepreneur can deal with risk
Dear Student
Here are the different ways in which an entrepreneur can deal with risks.
1. Transfer of risks: Transfering risk to insurance agencies by insuring against major risks such as damage to the facilities, product liability, injuries to clients or suppliers and demise or incapacity of business enterprise principals.
2. Reducing financial risk: Reducing financial risk with the aid of maintaining outstanding loans and financing desires to a minimum. Control growth at a rate that the organization can finance internally. If the organisation can not pay off some loans, change short-term credit with long-term, fixed-rate loans.
3. Performing a risk analysis:Performing a risk evaluation with the aid of evaluating the consequences of unstable activities, the probability of the consequences going on and the benefits of the unstable activities. Avoid risk through no longer carrying out things to do that have extreme and probably consequences and low benefits.
4. Getting legal: Hire an accountant. Form a LLC to restrict any liabilities, alternatively than have your private finances be at stake. Have an legal professional overview your contracts. It will charges greater money, however it will assist in protecting yourself.
5. Avoiding commitment: It may feel secure to sign a long-term workplace lease. Until you are firmly established, you need to be nimble and in a position to make speedy adjustments. Be cautious about committing to anything that could be a drain on your finances.
6. Tracking cash flow: One should usually track the cash flow. They should always know the financial status, good or bad, and have a realistic contingency plan.
Regards
Here are the different ways in which an entrepreneur can deal with risks.
1. Transfer of risks: Transfering risk to insurance agencies by insuring against major risks such as damage to the facilities, product liability, injuries to clients or suppliers and demise or incapacity of business enterprise principals.
2. Reducing financial risk: Reducing financial risk with the aid of maintaining outstanding loans and financing desires to a minimum. Control growth at a rate that the organization can finance internally. If the organisation can not pay off some loans, change short-term credit with long-term, fixed-rate loans.
3. Performing a risk analysis:Performing a risk evaluation with the aid of evaluating the consequences of unstable activities, the probability of the consequences going on and the benefits of the unstable activities. Avoid risk through no longer carrying out things to do that have extreme and probably consequences and low benefits.
4. Getting legal: Hire an accountant. Form a LLC to restrict any liabilities, alternatively than have your private finances be at stake. Have an legal professional overview your contracts. It will charges greater money, however it will assist in protecting yourself.
5. Avoiding commitment: It may feel secure to sign a long-term workplace lease. Until you are firmly established, you need to be nimble and in a position to make speedy adjustments. Be cautious about committing to anything that could be a drain on your finances.
6. Tracking cash flow: One should usually track the cash flow. They should always know the financial status, good or bad, and have a realistic contingency plan.
Regards