State the different ways in which an entrepreneur can deal with risk
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Answered by
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Track your cash flow: How much money do you have right now? Can you pay your bills? What if your biggest client went elsewhere? Ideally, you have three to six months of funds tucked away to cover expenses. Be conservative. Ask your vendors for sixty or ninety days to pay. You should always know your financial status, good or bad, and have a realistic contingency plan.
Listen to alerts: If you've hired well, or have close advisors, you can trust their doubts. Are they seeing something concerning in a contract, employee, vendor, or opportunity? It's easy to dismiss others' opinions, but you need to listen. They have your best interest at heart, even if you don't want to hear it. Thank them and reward them.
Get legal: Truth is, you can't grow and succeed without legal advise. Hire an accountant. Form a LLC to limit any liabilities, rather than have your personal finances be at stake. Have an attorney review your contracts. Yes, it costs money, but you can't afford not to protect yourself. Chances are that at some point, you will be glad you had the foresight to hire professionals.
Avoid commitment: It may feel secure to sign a long-term office lease. Until you are firmly established, you need to be nimble and able to make quick adjustments. Clients change and projects go sideways. You may decide to narrow your focus...or expand it. Something like an expensive address can become a detriment. Whatever it is, be cautious about committing to anything that could be a drain on your finances.
Listen to alerts: If you've hired well, or have close advisors, you can trust their doubts. Are they seeing something concerning in a contract, employee, vendor, or opportunity? It's easy to dismiss others' opinions, but you need to listen. They have your best interest at heart, even if you don't want to hear it. Thank them and reward them.
Get legal: Truth is, you can't grow and succeed without legal advise. Hire an accountant. Form a LLC to limit any liabilities, rather than have your personal finances be at stake. Have an attorney review your contracts. Yes, it costs money, but you can't afford not to protect yourself. Chances are that at some point, you will be glad you had the foresight to hire professionals.
Avoid commitment: It may feel secure to sign a long-term office lease. Until you are firmly established, you need to be nimble and able to make quick adjustments. Clients change and projects go sideways. You may decide to narrow your focus...or expand it. Something like an expensive address can become a detriment. Whatever it is, be cautious about committing to anything that could be a drain on your finances.
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HEY MATE ⭐⭐⭐
HERE'S THE ANSWER ✌
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1.
Select a business structure that limits personal liability. Change your business structure from a sole proprietorship in which you are personally liable for business operations to a corporation or limited liability company where you have limited liability.
2.
Transfer risk to insurance companies by insuring against major risks such as damage to your facilities, product liability, injuries to customers or suppliers and death or incapacity of company principals.
3.
Perform a risk analysis by evaluating the consequences of risky activities, the likelihood of the consequences occurring and the benefits of the risky activities. Avoid risk by not carrying out activities that have severe and likely consequences and low benefits.
4.
Transfer the risk of activities with severe and likely consequences but high benefits to other parties. Create a new, independent company to carry out these activities or assign them to suppliers or partners.
5.
Reduce risk from product failure and warranty claims by implementing a quality assurance program. Develop a system of reporting from customer service to identify problems. Structure the quality assurance program to document production tasks and product testing. Link the problems reported by customer service to specific failures in production or testing procedures and institute corrective action.
6.
Reduce risk of surprises in operating results by keeping accurate records and instituting effective controls. Put in place a system that limits who can authorize specific actions and how much they can spend. Implement a reporting system that gives you key information about company performance. Evaluate the controls and reporting system by comparing actual practice and performance to the control procedures and the reported information.
7.
Reduce financial risk by managing your accounts receivable to minimize outstanding balances and identify poor credit risks. Implement credit and payment standards, specifying which credit scores and payment records are acceptable. Evaluate customer payments and ask for advance payment from customers who don't meet the standards.
8.
Reduce financial risk by keeping outstanding loans and financing needs to a minimum. Control growth at a rate that the company can finance internally. If the company can't pay off some loans, replace short-term credit with long-term, fixed-rate loans.
✅✅✅✅✅✅✅✅✅✅✅✅✅✅✅
HERE'S THE ANSWER ✌
_________________
⬇⬇⬇
1.
Select a business structure that limits personal liability. Change your business structure from a sole proprietorship in which you are personally liable for business operations to a corporation or limited liability company where you have limited liability.
2.
Transfer risk to insurance companies by insuring against major risks such as damage to your facilities, product liability, injuries to customers or suppliers and death or incapacity of company principals.
3.
Perform a risk analysis by evaluating the consequences of risky activities, the likelihood of the consequences occurring and the benefits of the risky activities. Avoid risk by not carrying out activities that have severe and likely consequences and low benefits.
4.
Transfer the risk of activities with severe and likely consequences but high benefits to other parties. Create a new, independent company to carry out these activities or assign them to suppliers or partners.
5.
Reduce risk from product failure and warranty claims by implementing a quality assurance program. Develop a system of reporting from customer service to identify problems. Structure the quality assurance program to document production tasks and product testing. Link the problems reported by customer service to specific failures in production or testing procedures and institute corrective action.
6.
Reduce risk of surprises in operating results by keeping accurate records and instituting effective controls. Put in place a system that limits who can authorize specific actions and how much they can spend. Implement a reporting system that gives you key information about company performance. Evaluate the controls and reporting system by comparing actual practice and performance to the control procedures and the reported information.
7.
Reduce financial risk by managing your accounts receivable to minimize outstanding balances and identify poor credit risks. Implement credit and payment standards, specifying which credit scores and payment records are acceptable. Evaluate customer payments and ask for advance payment from customers who don't meet the standards.
8.
Reduce financial risk by keeping outstanding loans and financing needs to a minimum. Control growth at a rate that the company can finance internally. If the company can't pay off some loans, replace short-term credit with long-term, fixed-rate loans.
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