Online Campaigns, Online Advertisement and Common Sense

Potential Risks Of Business Projects

Neglecting risk recommendation can cause serious consequences, up to acknowledgement of the concluded agreement or void, or that is even worse, to have all your property arrested. In similar cases the affected party is frequently confronted with a fait accompli: money is spent, real possibility of their return isn’t present, and arrest is put on your property and similar horrors to that.

By the way, risks can be prosaic or serious, like for example, money is invested and the profit both wasn’t, and isn’t present. The chief of department of development of payment products in commercial bank Jack became the investor of building of restaurant. “This project has seemed to me safe. Such a place!

Five years ago he has enclosed in this business about $15 thousand and till now hasn’t received a cent. No, the restaurant wasn’t closed; it quite successfully works and even has regular customers. Only here profit doesn’t come.

The reasons in this case can be the following and both equiprobable. Or the restaurant can’t really step over a breakeven point, or the restaurant management hides (steals?) profit.

So before making decision to participate in any business project, it is necessary to receive a maximum of the information not only on object of the investment, but also about potential partners, their business reputation, history of successes and failures, financial possibilities.

Thus it is necessary to register in the agreement necessarily open entry to any information interesting the investor. Experts notice that in its practice there were cases when to the investor it was prohibited to take out from premises the contract draft for its studying and also accesses to the allowing documentation were limited. Anyway, to warn the potential private investor can all not clear, illogical and opaque conditions of participation in the business project.

For example, a disturbing case may be the attraction of money by cash bypassing monetary institutions (banks, financing funds and so on). It can testify that founders of business lead an ill practice. But anyway all sums transferred by the investor should be specified in the agreement or in the appendix to it irrespective of a method of means transfer. At least, it is necessary to ask the receipt for partners. Otherwise it will be impossible to prove the fact of entering of money.

Before daring to give money for development of someone’s business, it is necessary to find out also whether you can as the investor influence accepting of strategic decisions? It basically depends on your share in company authorized capital. If it is less than 5 %, seldom listen to opinion of such investor. Any way you should be really careful and think twice before you wan to invest you money into some suspicious business project and don?t be greedy as this can also lead to very dramatic consequences.

The days when governments have been showering people with all sorts of grants are over. At least for some time. But that does not imply that one should forget the idea of getting small business grants.

Everything is possible with smart attitude; small business grants including.

Read this blog for more practical tips about grants, how to apply for grants, grant samples, ups and downs of the grants. This information will help you to get small business grants or any other grants faster.

Tags: , ,

Leave a Reply