1.1.2 Flashcards
Financial risk
Financial loss,
business failure
loss of security
Financial rewards
Independence
Profit
Business security & success
Failing to understand the market
-underestimating competition
-market research
-wrong segment
Poor planning
-Innacurate cash flow forecasts
-inadequate resources
Poor descision making
Management efficiency
Lack of innovation
Badly organised
Poor stock control
Bad customer service
Cash flow/liquidity problems
Overtrading
Taking on too much work and gaining a bad reputation for pooor quality and taking time management
Non viable idea in first place
Many ideas aren’t researched properly and it’s only a matter of time before it fails
Ability to understand the market
Market research
Experience
Finding gap in market
Good planning
Cash flow forecasts
Investment in appropriate resources
Well organised
Good stock control
Good employees
Good customer service
Financial efficiency
Budgeting
Good cash flow management
