How to optimize risk in entrepreneurship-Venture care Professional business plan

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How to optimize risk in entrepreneurship-
Venture care Professional business plan
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Risks and entrepreneurship go hand in hand. No
business owner should just believe it and be
passive. Of course, risks should be mitigated or
at least be reduced. Professional business
plan Let me clarify that risk is not always bad
for business and its owner. Entrepreneurs should
take the calculated risk. First of all, let us
discuss what the benefits are of risks in the
business ? It refines vision and mission of
the company ? It makes the organization more
proactive in handling any kind of situation ? It
makes decision makers more aggressive ? It helps
in devising flexible strategies for the
organization ? It sends positive energy to the
middle and junior level management ? It helps
organizations in reaching new height of growth ?
It helps in forming much more loyal and dedicated
team for execution However, it is an injustice to
say that there are no cons of risks ? Frequent
failure of strategies may dishearten the top
management ? Competitors may acquire the failed
organization ? Execution team may leave the
organization ? Sense of fear may develop across
the organization ? Future contracts may be
canceled ? There may be socioeconomic pressure
from stakeholders including government It is
general notion that a start-up always faces a
higher degree of risk. But, this is not
completely true. A bigger organization will
always face a higher degree of risks because of
large size, huge financial obligation, bigger
team, global operation etc. Shifting from one
strategy to another to reduce risk is time
taking and by the time it takes the alternative
course of action, the aftermath of risk becomes
severe and unmanageable. In contrast, smaller
organizations including start-ups can shift to
alternative strategic plans soon to mitigate or
reduce risk. Let us discuss that what kind of
general risks an organization may face ?
Management risk- any of the key persons leaving
the organization ? Product risk- failure of
product because of being out-dated or competitors
came up with much- advanced product or
associated services ? Team risk- execution team
leaving the running projects suddenly ?
Suppliers risk- vendors/suppliers canceling the
contracts at very short notice ? Legal risk-
companies falling into litigations with
competitors ? Environmental risk- sudden
development of rules and regulations by state or
central government putting pressure hard to
survive ? Financial risk- inability to service
debt or not meeting financial expectations of
outside equity providers
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A general approach for mitigating or reducing
the impact of risks ? Try to forecast the risk-
although it is difficult in changing the business
environment to some extent it is possible as
well as desirable. ? Do not ignore ifs and buts-
always have back up plan be it related to
product/services modification, new launch,
execution team etc. ? Communicate well inside
and outside the organization- miscommunication
will create risk ? Maintain relationship- develop
and maintain relationships with current
customers/vendors and also with past vendors. ?
Raise finance only to the extent of requirements
and stage-wise ? Focus on cutting down the
operational and other costs ? Develop new way of
marketing How to start an online business To
conclude A risk is a double-edged sword. Taking
risk is good but mitigating the impact of
unwanted risk is desirable. Understand your
business and business dynamics very well and
deeply. Do counter attack if possible and
required. If you have any query please comment in
the comment box below or call us on 020 65363633
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