Risk and Reward

Risks

  • Business failure - poor cash flow; unexpected costs; drop in sales revenue

  • Lack of security - wage irregularity; sick pay; holiday entitlement; pension; saving being used up → loan needed; stress

  • Financial loss - start-up; technical risks; financial risks

How to reduce risk:

  • plan

  • research

  • monitor and review

Rewards

  • independence

  • profit

  • financial stability

  • business success