Friday, October 1, 2010

Business Risk Management Tips

Business Risk Management Tips

Below are some proven business risk management tips:

  • Don’t waste your money on fields that you don’t know. If doing so do it after some thorough research so that at least you know where your money goes and what the chance of profit.
  • Avoid strategies/businesses which require large upfront investments but high risky and offer low profits.
  • Concentrate on businesses/strategies which are low risky but offer relatively high profits.
  • Start at a small-scale level and exaggerate when it seems profitable, test every strategy before going on big-scale.
  • Hire talented employees and run them on a commission basis, so that they compete with others for their earnings.
  • Be sure with your cash flow. Do not leverage considerably so that it consumes more than your expected or existing profit.
  • Keep all things up-to-date so that your customers feed good about your products and services.
  • Keep your operating cost low, as much as possible.
  • Avoid business that run fully on glamour or extensive advertising; those are not for inexperienced or resource-limit businessmen.

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