Business Risks You Must Know Before Starting a Business

10 Business Risks You Must Know Before Starting a Business For Beginners

In this day and age the average person wants to bring his own business. Starting from various types such as cosmetic, culinary, service, service, and service businesses. Usually, people who have small capital can start it through a home business and people who bring large capital can immediately build a shop.

However, the thing that should not be underestimated in starting a business is looking at the risks. Business risk brings different types and levels of difficulty related to the sector of the business being run, the background of the business owner, and much more.

Because of that, in order to minimize it, the skipper must identify several types of business risks and solutions to overcome them.”

10 Business Risks You Must Know Before Starting a Business For Beginners

Business Risks You Must Know Before Starting a Business

Here, Decoo Info has summarized the types of business risks and their solutions. Come on, see the explanation as this.

1. Production Risk

Some types of businesses need to produce to run their business. The company is targeted to produce goods together with a predetermined quantity to meet market needs.”

However, due to human error or inadequate tools and so on, it can cause chaos in the production process, so that the goods produced do not match the desired quality.

The impact of chaotic production is defective goods, wasted materials, and fatal unless the goods reach the hands of consumers. Worse yet, unless the customer distributes the company’s goods Juragan to the general public which has the potential to lower the company’s rating.

This is what is known as production risk.

2. Marketing Risk

The next type of business risk is marketing risk. Various problems can be encountered in marketing the company’s products. If you make a mistake in marketing, it can certainly cause material losses for the company.

The changing market conditions with the times cause the marketing strategies that are carried out also have to be changed. If the company is not willing to change it can cause too big a bankruptcy.

The approach to the customer counts is one of the marketing risks. An inappropriate approach causes the customer to flee to the skipper’s competitors.

3. Human Resources Risk

The risk of human resources is caused by the employees in the skipper’s company. For example, they make mistakes that cause company losses or their lazy attitude causes company performance to decline.

Companies that nurture employees like this can make the future bleak. So, be wise in choosing employees and the most important thing is to train new and old employees on an ongoing basis.

4. Financial Risk

One of the risks that often occurs in companies is financial risk. Financial risk occurs because of the uncertainty of the income that the company earns every time. Not always the company can achieve big profits. In this pandemic era, there are even those who go out of business because they do not bring their daily income.

Sectors affected in the pandemic era are culinary, tourism, and face-to-face services. On the other hand, the technology sector has a rapid impact because everything can be done safely through social networking sites.

Therefore, to avoid or minimize financial risk, it can be done together with healthy company financial management steps. It is necessary to consider setting up a reserve fund except every time there is a problem that requires funds to solve it.

If you are not experienced enough, BukuWarung recommends consulting with a trusted business consultant or financial consultant. Financial consultants can provide additional solutions to financial problems that companies are experiencing. Do not be suspicious of hiring his services, although it is a bit expensive, but it is an investment for the company.

5. Environmental Risk

Several business sectors engaged in the environmental field can certainly arise various kinds of environmental risks. For example, a company that manufactures animal feed. The environmental risks caused are air, water and soil pollution.

However, there is no need to worry too much because now there are many places that educate and along with technological developments, pollution can be minimized.

6. Technology Risk

In the busyness of producing goods, companies need employees and technological machines. This condition raises a new risk, namely technology risk. Machines that are old and often break down cause the company’s production performance to decline.”

Especially in a transition era like this, many companies have to change their tools in order to adjust and be able to meet the supply of market demand.

For example, those who used to do promotions together with sales and connected to offline events. With the growth of technology we should not adopt such old steps. However, you have to make changes.

For example, holding virtual events through social places. Relying on the internet as a place of promotion, and so on.

What you can do to avoid this type of business risk is by rejuvenating the machine and doing regular maintenance.

7. Market Demand Risk

The market is actually too dynamic. Currently the interest in technology is very large. In fact, many service providers are engaged in technology like digital advertising agencies.”

However, will the market interest in the next 10 years be the same? Of course not! With this moment, an entrepreneur is expected to always innovate on the growth that occurs in the market.

8. Asset Development Risk

Every business person certainly wants his business to grow. One of the things that can be done is together with developing the company’s assets. However, this is a risk in itself unless you are not careful in developing its assets.

It’s better to do research and reconsider carefully whether it’s appropriate unless you want to develop company assets.”

9. Cooperation Risk

Having a business friend can certainly help the company’s performance too much. Business partners can be used as investors and managers of a business. However, unless the skipper’s business partner does not fulfill his obligations then it can be disastrous.

The solution to overcome this problem is to strictly select your business partner and do not hesitate to terminate the contract unless it is deemed inconsistent with the company’s target.

10. Bureaucratic Risk

Every business carried out is required to take care of all permits. Examples are permits to set up a business and paying taxes.”

Every decision that has been made must be adhered to by the company in accordance with their respective sectors. Sometimes the existing bureaucracy is too troublesome and it is not uncommon for business owners to be reluctant to take care of their permits which results in the sealing of the business area.

The solution to this problem is to always follow the existing regulations properly and not try to bribe so that the bureaucracy can be cut down.

Well, those are the types of business risks that you should know. One of the most detrimental business risks is poor financial management.”

Poor financial management can cause companies to go bankrupt or go bankrupt without realizing it. Usually unless it is already heavily indebted, the company can sell some of its assets to pay off or replace the co-manager with a new one.

However, you don’t have to worry about poor financial management because with the BukuWarung application you can manage company finances more easily and safely. You can download it for free via Playstore and Appstore.

Leave a Reply

Your email address will not be published. Required fields are marked *