P4 Unit 4 Business
TASK 4
For the business owner, the risks must be known and a strategy on how risks will be managed needs to be in place.
4.1 IDENTIFICATION OF RISKS
• Strategic risks
The risks of having other competitors entering the same market in a short time is high since the capital required is low and no stocks are required.
• Compliance risks
Laws are constantly changing and new regulations are always emerging which could:
• Hinder or change the operations
• Increase the costs of overheads
• Financial and operational risks
The cash flow of the business indicates the health the business. Since the operation of the business is based on services, the risks of having stocks of material are non-existent. Additionally, if a customer will not pay for the …show more content…
• A risk management procedure should be in place to avoid any failures
• Marketing is vital for the survival of the business. In the case of start-ups, marketing should be used as a means of exposure and sufficient resources should be allocated to communicate what the business is about and what is being offered.
• Marketing should be carried out through the life cycle of the business especially at times when the business is suffering due to external events such as economic recession when any potential customers cut their expenditures.
• A well-structured website together with social media presence are important. Without social media updates, the business is lost to other competitors who are regularly using them to promote their business (Schaefer, 2017).
• By marketing the brand and continuously improving it, together with keeping an active social media network, the service and products remain competitive with other brands (Sweeney, 2011).
• Customers can be considered as the biggest asset and liability that a company has and should be heard, given assistance and answered within the shortest timeframe
For the business owner, the risks must be known and a strategy on how risks will be managed needs to be in place.
4.1 IDENTIFICATION OF RISKS
• Strategic risks
The risks of having other competitors entering the same market in a short time is high since the capital required is low and no stocks are required.
• Compliance risks
Laws are constantly changing and new regulations are always emerging which could:
• Hinder or change the operations
• Increase the costs of overheads
• Financial and operational risks
The cash flow of the business indicates the health the business. Since the operation of the business is based on services, the risks of having stocks of material are non-existent. Additionally, if a customer will not pay for the …show more content…
• A risk management procedure should be in place to avoid any failures
• Marketing is vital for the survival of the business. In the case of start-ups, marketing should be used as a means of exposure and sufficient resources should be allocated to communicate what the business is about and what is being offered.
• Marketing should be carried out through the life cycle of the business especially at times when the business is suffering due to external events such as economic recession when any potential customers cut their expenditures.
• A well-structured website together with social media presence are important. Without social media updates, the business is lost to other competitors who are regularly using them to promote their business (Schaefer, 2017).
• By marketing the brand and continuously improving it, together with keeping an active social media network, the service and products remain competitive with other brands (Sweeney, 2011).
• Customers can be considered as the biggest asset and liability that a company has and should be heard, given assistance and answered within the shortest timeframe