When you need to start a business,
are you considers the risk of business.
That is not simple as you think. Especially those people who need to
start private limited operate the business. In my opinion, the boss should
consider 3 major risk: -
a)
Capital
Risk
b)
Government
Policy Risk
c)
Management
Risk
The abovementioned risk included a
lot of uncertain issue, there also comprising many small risks. Like
a)
Capital
risk
As a investor start a business
require capital. So, the money maybe borrows from friends, family or relative.
Some others raise funds from financial institution. The pressure derive from
refund due date and then always cause the business face the cash flow problems.
The activities of business always
subject to how fast you can close the deal and so receive the yield back into
your company. If one of the deal close without any cash return, it could not
said you has been successful on such deal. Because anytime it can be turn as
bad debts or loss the gross margin because of opportunity cost ( Like bank
interest or another new business deal). So monitoring the cash flow always is
priority concern in the business activities. Other than that also some business require a
heavy investment on capital expenditure, like Power supply business, development
or Infrastructure or development of new IT or research the new medicine and so
on…..) Such business in the few stages do not give you any return or revenue,
so the pressure on such sometime make a good idea ceases in between.
b)
Government
Policy Risk
Every country owned difference of
policy for business activities. So the company may face various rules and
regulations bind it. That also brings a corporation facing heavy local tax, law
or restricted activities or levy tax or structure of shareholding and then the
corporation also need to fulfill difference type of tax and labour law to
expand and uncertain period of audit from those local authority.
The above issues can bring a
corporation loss everything and then shareholder in the trouble. Without such
knowledge on authority department make those directors and shareholder may hold
high risk to against the law.
c)
Management
risk
In the corporation, key personals
with difference views for company vision require a big capital to satisfy all
difference type of projects. If one the projects fail can make the management
loss focus on main duty.
The workers loss direction on
company main project also is a management risk. If the circular system too complicated or complex or documentation
misplace or loss also can cause problems.
As a boss of one company or an
investors of one company. That is difficult task to ordinary people. You must
listen, action, performing as well as with good attitude. Not only such, you
also must have change and flexible. If
you have educate with professional course, you are hardly to understand one
business man. That’s true.!!!!!!
