Based on what you know, and the material presented in the course thus far, what are...

Based on what you know, and the material presented in the course thus far, what are the TOP TEN risks associated with starting a new business, and why? Just like in the previous questions, place in order of priority and place a degree of importance/severity on each risk factor. (Hint: some people think the biggest risk is sunk salary you could have earned, or damage to ego, or wasted time, or damaged reputation, or letting down one’s family, or being sued, or going to jail, etc, etc.)

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Expert Solution

The Biggest risk in the order of priority and a degree of importance/severity are as below. Importance severity is out of

Rank	Risks	Importance Severity	Reasons
1	Personal Health	10	There might be a decline in health due to stress and strain of running a business. Person can get depressed.
2	Debt/Leverage	9	Debt leads tocontinuous stress and prevents one from focusing on doing his daily activity.It also closes the avenues for growing again. Business partners will be angry.
3	Bankruptcy	8	You can lose all the capital and must start from zero
4	Damaged relations	7	Business relations will be damaged and this hampers another chance at doing business
5	Uncertain future	7	Future is uncertain if business fails
6	Family life	7	Family life can be affected and damaged due to failures.
7	Reputation	6	One can lose his reputation in this process and this can damage his ability to do business again
8	Dip in confidence level	6	Failures can cause a person to lose confidence and hinder his ability to work
9	Jail	6	Risk of going to jail in case anyone sues.
10	Opportunity cost	5	Opportunity cost due to loss of time and returns from other choices

keosha answered 1 year ago

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