BUSINESS TALK(LEARN WITH STEEM) COURSE 102 - RISK IN RUNNING A BUSINESS
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Hello to everyone in this wonderful community today. I welcome you all to yet an amazing episode of the BUSINESS TALK lesson. Just as I said earlier the purpose of this lesson is to educate individuals who are already running a business or about to start a business to know the necessary things to consider before starting up a business.
Today I bring to us all yet another topic regarding the business talk and I have tagged today's lesson risk in running a business. This will be a powerful and interesting topic and I urge you all to stay put as I drop this article.
Before I move straight to the business of the day, It is expedient that we all should know what business entails and I will be defining the concept business to us all.
WHAT IS BUSINESS
A business is said to be a normal profession or trade in which one does to earn a living and business is said to be the act of buying and selling for the purpose to acquire profits. It can also be an act of rendering services for money as the case may be.
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Now why not we take an example of business. If I buy steem cryptocurrency from users and then I decide to hold it and not to sell, that means I am keeping the steem currency for a longer period and that will earn me profit when it price value goes up as though it is a long time investment.
Another example is seen in a case where by I sell data and my customers come to me to purchase data. Now if I purchase 1gb for 3 steem and then decide to sell it for 4 steem then I have made a profit of 1 steem. So that is business.
It involves the act of buying and selling or rendering of services for the purpose of acquiring profits.
With the above explanation, I believe that we all are now familiar with the concept of business and how it works. Although we have different kind of businesses and how they operates but today we will be dealing with the risk in running a business.
We may be wondering that since business is all about buying and selling, then how comes are they risks in running a business. Do not worry because I am here to explain that to you in no time. Now after all have been said, let's move straight to the business of the day.
RISKS IN RUNNING A BUSINESS
Yes business involves the buying and selling or an act of rendering services for profits purposes but there are certain risk in running a business and I will be providing the risks in different points.
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This is one of the greatest risk in business. Not knowing how a business operates is bad and as such it is a great risk to take. A lot of individuals go into a business without know how the business works and in a short-term that business will begin to go down and this is as a result of not knowing what the business entails.
It is always advisable to know how a business works, how the business sells and gain profit before one ventures into such business. So not knowing how a business is carried out is a great risk and one should be careful of such.
We all know that trial-and-error is a way of carrying out an experiment using multiple methods for the purpose of acquiring the best outcome. Now many people also uses trial-and-error in business this days and it is risky.
Yes we all know that risk is inevitable but it is expedient that you weigh the level of your risk before taking it. It doesn't sound right for a business to just see someone selling rice and then that person also decides to go sell rice without knowing the business.
We need to be careful about trial-and-error in business as though if it doesn't work out, it can swing all your funds down to the ground and then one goes to start from level one.
Depending on your kind of business but judging from my kind of business, it is important to know your customers that patronize you before starting up a business.
You don't just start up a business without knowing your customers or creating awareness of that same business because there would be no one to buy from you if you don't create awareness or know your customers.
It is very vital to know your customers before setting up a business, know people that can patronize you and make sure they are legitimate and are there at all times less the business remains stagnant.
The location of your business determines the growth and patronage of the business. A nice location brings customers to your business doorstep at all times and as such, the business will grow speedily.
But in a process whereby the location of which your business is situated is not the exact location that the business is expected to be situated is also risky.
Imagine one a phone vendor starting up a phone business in an area where illiterate are located, I don't think that phone vendor will sell because those illiterate do not know how to read or write talk more of knowing how to operates a phone.
An if that vendor continues that business in that environment in a short-term, that business will have no choice but to shutdown because of lack of patronage. You can see that it is risky to situate your business in a place or in an environment where such business is not appreciate.
So it is better to know the right location of your business and where it will be appreciated before you establish such business in that location.
This is another risk in business that I want to talk about. It is quite risky to start up a business with a very poor amount of money. I am a businessman and this I know very well in business.
When I started my business, it was small and the goods inside were little and this discouraged many customers of mine because whenever they come to get something, I don't normally have them and little by little I started losing my customers because I couldn't get some goods that are need due to I was lacking funds.
It was later on when I managed to lend some money from a friend, immediately I restocked my business. I added more goods to the shop and the shop got full, this made me to gain more customers because literally I make sure that whatever they ask for is always available.
So not having much finance to fund your business is risky as though it can make one to lose customers in a bit and that is why it is expedient that you get the right resources before you venture into any business of your choice.
I have talked about the major risks in running a business and if these risks are well managed enough to the minimum level then there would be growth in the business. So it is expected that we take not of these risks and other risks that we are already familiar with so to keep us afloat in the running of our businesses.
CONCLUSION
Thank you all for having me today and I want to believe that we all have learned something today. I will be coming up with more topics regarding business talk as though it is a weekly teaching. Stay tuned.
For those who missed the previous lesson, here is it if you want to go through it Business talk course 101
Thank you, friend!
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