Business Risks

[paul12]

Hello Friends......

What risks are involved in starting your
own business?

Thanks

[DEADMAN]

There may be total loss of investment in business if you don't become serious to it. And sometimes, it puts you in extra expenditure.

[devilbatista]

The common risk can be the Business not gaining profit and run in loss.

[shylock]

Hi

Business risks are of a diverse nature and arise due to innumerable factors. These risks may be broadly classified into two types, depending upon their place of origin.

* Internal Risks are those risks which arise from the events taking place within the business enterprise. Such risks arise during the ordinary course of a business. These risks can be forecasted and the probability of their occurrence can be determined. Hence, they can be controlled by the entrepreneur to an appreciable extent.

The various internal factors giving rise to such risks are:-

Human factors:- are an important cause of internal risks.They may result from strikes and lock-outs by trade unions; negligence and dishonesty of an employee; accidents or deaths in the industry;incompetence of the manager or other important people in the organisation,etc. Also, failure of suppliers to supply the materials or goods on time or default in payment by debtors may adversely affect the business enterprise.
Technological factors:- are the unforeseen changes in the techniques of production or distribution.They may result in technological obsolescence and other business risks. For example, if there is some technological advancement which results in products of higher quality, then a firm which is using the traditional technique of production might face the risk of losing the market for its inferior quality product.

Thanks

[w3bmaster]

Fraud
Getting in debt
Not earning enouf to cover costs

But you know the say you have to risk it to win it ...

[kurosagi]

I do internet business, and the risk is not too much.
Maybe the risk is i lost offline socialization. But not 100%.