Mitigating Risk Question

Business & Finance
Tutor: None Selected Time limit: 1 Day

The most common reason a business fails is lack of capital. If this is the case, what steps would you take when starting your own venture to mitigate this risk?

Oct 17th, 2015

Thank you for the opportunity to help you with your question!

For a new business venture the risk involving lack of capital can be caused by high startup cost. This can be minimized by considering the following.

  • Run a family-owned business - This will cut down on trust issues. Book keeping may be easier when family is involved.
  • Increase visibility by franchising. This will open more options  for extra capital and reduce failure rate. Franchisers will help you set the maximum dollar amount to spend on a venture
  • Carry out part time operations. This will help bring in extra cash.
  • Use a home office to lower cost of paying office rent

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 17th, 2015

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