1.1.2 Risk and Reward Flashcards
what are potential risks
business falilure, financial loss, lack of job sucurity
what are potential rewards
business success, profit, independence
what are causes of business failure
poor planning, failing to understand the market, poor decision making, badly organised, overtrading, non-viable idea
what are causes of financial loss
loss of personal assets, opportunity costs
what are causes of lack of job security
financial stress, stress and health problems, no guarantee of success
what are causes of business success
understanding of the market, good business planning, good deciison making, well organised, financial effciency
what are reasons for being profitable
sale success, established, market awarness
what are reasons for independance
a personal challenge and greater satisfaction, meeting self esteem needs, helping provide employment, security for family
how to minimise the risks
carrying out market reasearch to find out what customers want, writing a business plan, making sure there is money avaliable
