Content of this unit
The cost and risks of setting up a micro enterprise
In this section, you will consider potential risks that your circular enterprise will face during and after the start-up phase. It is essential that you identify and assess potential risks so that they can be either mitigated or eliminated. The main categories of risk include risks associated with the product or service, financial management, the market, health and safety and the result of a poor risk management strategy.
Anyone thinking of setting up a new enterprise will have lots of reasons for wanting to set up their own business. Reasons might include:
There are many great reasons to start a business, but it is how you manage the business day to day that matters. Taking an idea and bringing it to life is a rollercoaster of emotions and it is not for the faint-hearted.
If you are starting out in business or are currently already running an enterprise, it is important to consider what could go wrong so that you can prepare should the worst happen. The risks associated with your business will vary depending on the type of business. However, there are some general business risks of which you need to be aware including: risks associated with your product or service; risks associated with finance and cashflow, the market place and concerned with health and safety.
One way of conducting a robust risk assessment is to use the technique described in Unit 4: Developing an Idea for a Circular Product or Service, but in the context of the business rather the product or service.
Anyone thinking of setting up a new enterprise will have lots of reasons for wanting to set up their own business. Reasons might include:
- To increase the flexibility to set and work your own hours
- To have more spare time
- To call the shots
- To set and manage your own deadlines
- To create your own working environment and future
- To pursue your passion or to create something from scratch.
There are many great reasons to start a business, but it is how you manage the business day to day that matters. Taking an idea and bringing it to life is a rollercoaster of emotions and it is not for the faint-hearted.
If you are starting out in business or are currently already running an enterprise, it is important to consider what could go wrong so that you can prepare should the worst happen. The risks associated with your business will vary depending on the type of business. However, there are some general business risks of which you need to be aware including: risks associated with your product or service; risks associated with finance and cashflow, the market place and concerned with health and safety.
One way of conducting a robust risk assessment is to use the technique described in Unit 4: Developing an Idea for a Circular Product or Service, but in the context of the business rather the product or service.
