Title: Analyze strategies that can be used to manage the risks of a new business.
Course: Entrepreneurship (12053-I) > Section: Understanding Business Ownership

Analysis should include start-up strategies such as

- evaluating personal, financial, market, and customer risks
- researching customer need (i.e., product-market fit)
- researching risk-related data specific to similar businesses in the same industry/market
- taking precautionary actions (e.g., insurance, emergency response plan)
- maintaining oversight to ensure continuous level of quality
- working as a manager in a similar type of business prior to attempting the entrepreneurial venture
- developing mentor relationships
- having a board of directors
- developing a business model that leads to a detailed business plan (see Business Model Canvas)
- emphasizing customer service in the mission statement and in staff hiring and training plans
- analyzing the environment to determine threats and opportunities
- having a selective hiring process
- developing a clear vision
- assessing the company's strengths and interests
- seeking the advice of experts (e.g., accountants, attorneys)
- forming a partnership with a person who has complementary experience and skills
- networking with like-minded individuals in the same industry
- ensuring family support.

Process/Skill Questions:

- What risks are inherent to all new ventures, regardless of type?
- How can entrepreneurs assess risks specific to their venture?
- What indicators can be used to assess the financial condition of the business?
- How might past experience in a similar business lower an entrepreneur’s start-up risks?
- Why is it important to analyze the market and develop a competitive edge prior to starting a new venture?
- How can entrepreneurs transfer risk in order to minimize loss?
- How can individuals within an organization pose risks to the success of a venture?