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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 695 |
Essay's paper body
You need to consider a number of scenarios such as: How will a price increase affect the business? We will be able to handle the high volumes of a new customer? These types of risk analysis can become part of your cash-flow budgeting process. If you can forecast certain instances that may arise you can be prepared to handle them better...
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For example, if you understand a long-term contract will end 6 months from now, you can manage the risk by looking ahead. You know you need to find new clients to replace that business.
Another risk with running a business is with managing costs and inventory. Analyzing inventory turnover to determine which items are selling and which are not is key to freeing up working capital and managing overhead...
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