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Posts Tagged ‘Business Risks’

You and I know very well that the economy is dynamic and risky business. The future is uncertain, and what seemed to work well until yesterday is no guarantee that it is today. Thus, it can change at any time and changes can create opportunities and poverty in our society.

The future is unpredictable and planning alone cannot free us from risk. Many business people doing something wrong, if they plan well, their company fully protected against them. But there are some losses you cannot control.

The global economy is aggressive marketing outperform their competitors, so that their companies are competing to survive in the market is too crowded. If they fail to do what the attention of their competitors, then they run the risk of losing money.

But even if you say, the loss of your business, good news is that you’ll be able to mitigate losses. There are several ways to prevent harm to your business too. You know …

As an entrepreneur, you will find that the marketing process that is linked to the commitment that you’re trading losses. If a disaster occurs during the execution of your marketing process, then you oppose the benefits you expect after the sale of your services or products delivered.

There are several types of risk and the class on a different basis. They are:

A. Principles as a result of changes in market conditions based

They arise from fluctuations in market prices. The market fluctuations caused by three factors, namely, time, location and competition. Let’s talk about the various factors in detail.

Time – played a role in influencing market prices and may result in the loss. Producers May Manufacturer products in large quantities in the hope that the market price increases in each period. But later, the expected increase in prices in the market is not very successful in demand for these products will decline and prices fall too.

Location factor – is caused when there is a difference in prices in different markets at once. You can buy products from one market to be obliged to make a lower price in the sales market and therefore sell at a loss.

Competitiveness – This will result in the loss if you do not compete with the market. They should focus on what your competitors of your earnings warning business impact.

B. As those resulting from natural causes based

They are beyond your control in your business. You will see how they ruin your established business. Are you able to earthquakes, fires, storms, hurricanes and rains causing flooding? It is impossible and only God can. But you can mitigate the losses resulting from these types of risks.

C. Ones by human behavior based

What are the risks in your business. You are fully responsible for them. Since you mention the creator, you can control it from occurring in your organization. Examples include bad debts, shoplifting in your company / theft, etc.