Risk

Risk, as defined in the Merriam Webster’s dictionary, is the possibility of loss or injury. Basically, if there is any chance of failure, loss, setbacks, etc. there is risk involved. There is a huge amount of risk involved in business. For example, starting a business is a major financial risk. If the business is a failure or doesn’t make sustainable profit, it will go out of business causing a massive financial loss for the entrepreneur. Starting a business is not the only risky thing involved in business. The whole point of most businesses is to make money or profit, and in order to do so it requires a multitude of risks to be taken. Depending on the business, one may have to be able to determine what to sell, how much to sell, how high to price, where to sell, where to operate, and so on and so forth. If one or more of these things is chosen wrong, it could be extremely detrimental to the business as a whole. For the most part, though, the risk/reward factor is high. Should a business thrive and become a primary business in its market, it could mean a massive financial gain for the entrepreneur pursuing the growth of the business. On the other hand, should the business fail and not bring in the required profits in order to operate, the owner/entrepreneur could end up losing everything. One must always analyze the risks and properly plan for the worst when creating a business or even being involved in a business, as in the business world anything can happen, and everything could change overnight.