Business Taking Risk And Making Profit - 824 Words

Day to Day Needs of a Business: Taking Risk and Making Profit Many first time entrepreneurs focus on the ideal luxury of upfront cash flow; although, it is not a necessity. A business owner must understand that entrepreneurship includes, but not limited to, day to day risk, having effective marketing strategies, and productive communication with colleagues and employees. Many entrepreneurs have failed to apply these basic concepts or gave up on their dream. Having a strong tolerance for risk and embracing the fact that nothing is guaranteed can help you effectively manage your business in a manner that would aim your focus on future success rather than being overwhelmed by obstacles your business may face. If a business is using the same strategy from 5 years ago then it is likely there are threats along the road. Contingency plans are important as they would guide the employer and employees in the direction needed to handle risk as they would occur. For example, the warehouse may burn down filled with inventory, the entrepreneur must be able to identify all lost items. Keeping inventory level that is too high or too low is also risky. Figure out a minimum number of units to sell and keep track of your best sellers. Not preparing for natural disasters can put all your hard work in jeopardy. When the possibility of unknown loss is present, pure risk exist. Effective management is clearly the best way to reduce risk. Also, renting facilities and keeping fixedShow MoreRelatedTaking Risks and Making Profits within the Dynamic Business Environment1633 Words   |  7 Pagesï » ¿Chapter 1 (page 4-19) Taking Risks and making Profits within the Dynamic Business Environment Business: Any activity that seeks to provide goods and services to others while operating at a profit. Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses needed to run the business operation. Goods are tangible products such as computers, food, clothing, cards appliances and services include intangible products which cannot be held in yourRead MorePersonal Motives For Corporate Social Responsibility933 Words   |  4 PagesAnnotations and Critical Analysis Motives for Corporate Social Responsibility (Graafland, J. Mazereeuw-Van der Duijn Schouten, C. 2012) analyze the motivations of directors to take responsibility for the labor, environmental and social aspects in business. It distinguishes the Corporate Social Responsibility (CSR) by conducting a survey consisting of a sample of 473 executives. What is more, the motives are classified as three types: â€Å"financial motives†, which is external, â€Å"ethical and altruistic†Read MoreA Business s Only Responsibility1013 Words   |  5 Pagesbusiness’s only responsibility is to produce profit. To what extent do you agree with this statement? Businesses should take social responsibility in addition to producing profits. Corporate social responsibility refers to a business practices that involves participating and make benefits to society. CSR is a way of companies benefiting themselves so; business should also take social responsibility instead of only taking profit. This is because taking on social responsibility benefits both the societyRead MoreA Research On Capital Budgeting846 Words   |  4 Pagessucceed they must be constantly aware of their financial situation. Capital budgeting is the process of planning expenditures that generate cash flow and that are also expected to go beyond more than a year. Any organization that is taking on a new project, or making a new investment, needs to determine whether this will be the most efficient use of their funds and whether this course of action will lead to an increase of wealth for the organization. Throughout this process, several principles shouldRead MoreThe Financial Decisions of Small Business1037 Words   |  4 PagesSmall Business Financial Decisions Small business owners face many challenges when starting a business. Many people have a great concept, but few understand the difference between forms of money, capital, and risk taking. Responsible businesses do not just take risks without first calculating those risks. In fact, even the types of debt acquired by a business owner are considered carefully before decisions are made and action taken. It is these calculations and assessments that determine the differenceRead MoreFeasibility Analysis Of Javanet Is An Internet Cafe Essay911 Words   |  4 Pagesinvestment, from the investment of the 3 other private investors, and from the short term loans; totaling $112, 290 for start-up costs, (Business Plan Pro, 2009). Feasibility Analysis JavaNet is the creation of an environment that will be positioned as an educational resource for individuals wishing to learn about the benefits the Internet has to offer, (Business Plan Pro, 2009). JavaNet will be giving its customers access to the latest in computing technology, external POP3 and JavaNet emailRead MoreHardware Replacement Project1243 Words   |  5 Pagesundertaking for a business to implement. It is essential that the project have proper management in order for the project to be a success. According to Laudon and Laudon (2013), â€Å"Project management refers to the application of knowledge, skills, tools, and techniques to achieve specific targets within specified budget and time constraints† (p. 389). This can be achieved if the five major variables of project management are followed; these five variables are, scope, time, cost, quality, and risk. If theRead MoreAn Assessment Into The Bankruptcy Examiners Report Regarding The Risk Management Failur e1169 Words   |  5 PagesBankruptcy Examiner’s report regarding the risk management failure as it relates to Leman Brothers. The fundamental reason for the failure is based on the change in corporate strategy of 2006 in which Lehman decided to shift from a â€Å"moving† or securitization business to a â€Å"storage’ business, with the firm making and holding longer-term, risk investments. This â€Å"strategic positioning† was fully supported by the board, although the chief risk officer and certain senior risk management executives had expressedRead MoreFinancial Risk Is The Chance That The Restaurant714 Words   |  3 PagesFinancial risk is the chance that the restaurant will not be able to cover its financial obligations. This type of risk cannot be totally eliminated, as every investment incurs some degree of financial risk. Even with a significant investment, there is always going to be some chance that the business will fail. Poor location, lack of (or mishandled) capital, low sales volume, or other factors may negatively impact profitability, making it more difficult for the business to pay its lenders and investorsRead MoreA Report On Sainsburys Incentives1650 Words   |  7 PagesSainsbury’s incentives are in making lives easier by delivering fair prices and quality services; focussing on location, leading to growth in both convenience and discount stores. J Sainsbury plc (2015) Strategic Report is divided into two sections; the non-financial KPIs are: Product Quality, Like-for-Like Transactions, Price Perception, Sales and Service Growth, Availability and Customer Service that focuses on social responsibility. Fredrick (1960) agrees in taking opportunities to fulfil the needs