Business Growth and Risk Management

This lesson, part of Unit 14 on company growth, focuses on minimizing loss while navigating business growth. It introduces the RAISE framework, which stands for Research, Assess, Increase, Sustain, and Execute, as a strategy for entrepreneurs to minimize risks and execute growth effectively. The lesson also covers potential crisis points such as economic stability, competition, regulations, and supply chain issues. It emphasizes the importance of risk and crisis management, financial health, and liability insurance. Additionally, it discusses the significance of balancing capacity and capability and the role of diversification in reducing reliance on a single income source.

What is one of the potential crisis points for modern businesses?

• Brand recognition

• Technological advancements

• Economic stability

• Employee satisfaction

Which of the following is NOT a component of the RAISE acronym?

• Evaluate

• Increase

• Assess

• Research

What does the 'S' in the RAISE acronym stand for?

• Sustain

• Strategize

• Simplify

• Support

What is the primary goal of risk management for entrepreneurs?

• To improve customer service

• To expand product lines

• To identify potential threats to profitability

• To increase market share

What is the purpose of crisis management?

• To launch new products

• To hire new employees

• To increase sales

• To develop contingency plans for unexpected emergencies

What is the difference between capacity and capability in business growth?

• Capacity is about inventory, capability is about resources

• Capacity is about resources, capability is about inventory

• Capacity is about marketing, capability is about sales

• Capacity is about sales, capability is about marketing

In the restaurant example, what was the capacity bottleneck?

• Lack of customers

• Lack of delivery drivers

• Lack of kitchen space

• Lack of marketing

What is one way the online clothing boutique can manage capacity and capability gaps?

• Increase product prices

• Limit customer service hours

• Negotiate additional warehouse space

• Reduce marketing efforts

What is diversification in business growth?

• Focusing on a single product line

• Offering a variety of products and services

• Increasing employee salaries

• Reducing marketing expenses

How can a software company manage the risk of developing a mobile app?

• Reduce the number of desktop applications

• Partner with a mobile app development company

• Increase the price of the desktop application

• Limit customer support