What are the common financial risks of start ups

Common financial risks for start-ups include difficulty in collecting payments and backlog of goods; The rent is too expensive and the area is too large; Occupation of fixed assets and excessive decoration costs are common financial risks faced by start-ups, and start-up managers should remember to assess the situation and try to avoid these risks.

Start-ups

Start-ups generally refer to all kinds of enterprises that have just been established and do not have sufficient funds and resources. There are often problems such as lack of funds, lack of talent (usually only founders and a few core employees), and difficulty in business development. Subsidiaries and joint ventures that are generally invested and established by large enterprises cannot be counted as start-ups.

What are the common financial risks of start-ups(Answer: d) a, difficulty in receiving, backlog of goods b, rent is too expensive, area is too large c, fixed assets occupied, decoration costs are too much d, all of the above.

The common financial risks of start-ups are mainly bosses, because start-ups, no experience, no understanding of financial and tax policies, and do not pay attention to it, just find a novice accountant, the novice accountant is bold and the level is poor, and the financial risk comes.

The financial risk of an enterprise refers to the uncertainty of its financial situation in the process of various financial activities due to various unpredictable or controllable factors, so that the enterprise has the possibility of incurring losses. According to the main links of financial activities, it can be divided into liquidity risk, credit risk, financing risk and investment risk.

According to the degree of controllability, it can be divided into controllable risk and uncontrollable risk.

Is it important to open up the market or risk control?

Generally speaking, high risk corresponds to high returns, and low risk corresponds to low returns, but for credit business, risk and return are highly unequal.

The bank operates a most special asset, and the time value of money, how to ensure that the asset is safe and effective, is the first thing every relationship manager has to face.

The financial risk of an enterprise can be divided into liquidity risk, credit risk, financing risk and investment risk according to the financial activities. According to the degree of controllability, it can be divided into controllable risk and uncontrollable risk.

Financial risk refers to the uncertainty of the financial situation in the process of production and operation of the enterprise due to the influence of the macro environment and its own changing factors, which may cause the enterprise to suffer losses.

Internal reasons for the formation of financial risks in enterprises.

1. The capital structure is unreasonable.

If the scale of debt borrowing is too large, it will increase the burden of interest payment on the enterprise, and its ability to repay debts will be affected, which will easily lead to financial risks.

2. Unreasonable investment decisions.

The right investment decisions can reduce corporate risk and increase corporate profitability. Wrong investment decisions can lead to catastrophic losses for businesses;

3. The financial management system is not perfect.

If the financial management system cannot cover all departments and all operational links of the enterprise, it is easy to cause financial loopholes and bring financial risks to the enterprise;

4. Financial personnel have weak risk awareness.

The lack of risk awareness of the financial personnel of the enterprise leads to the lack of adaptability of the enterprise in the event of emergencies, which is easy to bring financial risks;

5. The income distribution policy is not scientific.

The profit distribution policy of the enterprise is detached from the actual situation of the enterprise and lacks a reasonable control system, which will affect the financial structure of the enterprise, which may form financial risks.

External causes of the formation of financial risks in the enterprise.

1. Macroeconomic environment and policies.

If the macroeconomic environment is good, the overall profitability of the enterprise will improve, the financial situation will improve, and the financial risk will be reduced. If the macroeconomic environment is not optimistic, the investment and operation of the enterprise will be affected, the profit will decline, and it may face financial risks;

2. Industry background.

The position of the industry itself in the national economy, as well as the different stages of development of the life cycle of the industry, make the investment value of the industry different, and the financial and limb risks are also different.

The main measures to mitigate financial risks.

When the business of the enterprise is in difficulty due to insufficient funds, it can raise the required capital by issuing **, bonds or bank loans. Enterprises should adopt a strategy of diversification when making ** investments. In order to avoid exchange rate risk, enterprises should strive to use their own currency as the contract currency, using hard currency for exports and capital exports, and soft currency for imports and capital imports.

Enterprises should know that the company should determine the optimal cash holdings, the optimal inventory and accelerate the accounts receivable. When determining what kind of products to produce, enterprises should first do a good job of researching the product market and produce marketable products.