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I'm stumped. A smallhome wares store has been in business for 15 years, owned and operated by Maggie, a sole trader.
Could I please get some help with the following project.... I'm stumped. · A small home wares store has been in business for 15 years, owned and operated by Maggie, a sole trader. The business is going very well and Maggie would like to expand into the adjoining vacant shop. The rent would double, and, although this is an additional expense, Maggie is confident that the increased inventory and potential for sales will ensure that she can incur the additional expenses associated with the expansion. The lease on the additional shop front is for 2 years. Maggie is considering extending the current lease for an additional 1 year so that they expire at the same time.The profit and loss of the business: If anything goes wrong or business is slow, Maggie has a credit card with a $15,000 limit, and is confident that this will alleviate any immediate financial worries. There is also an alternative supplier that Maggie has an account with if she reaches her credit limit with the main supplier. Unfortunately, as all of her available finances will be invested in the expansion there will be no additional cash flow.Marketing for the expanded shop and new products should be quite simple, a few fliers on the town notice board and a sign in the window is enough to spread the word.Maggie's close friend of 5 years, Jackie, has decided to join the business with Maggie. Jackie does not have any financial interest in the business but enjoys shopping and it will be fun to help with the purchasing of stock and displays. Jackie has also offered to cover the shop so that Maggie can have some time off. Jackie's daughter Samara will also help out and cover the Saturday trade as it is anticipated that the shop will be very busy between 9am-3pm. Maggie can pay cash in hand for her to work in the store.Jackie does not have any experience in record keeping or financial management of a business. If there is something that Jackie is not able to do she can leave a note for Maggie to do it later.After all, it is only a small shop, how high could the risk be?· 1. How could Maggie control the overall business risk? · 2. Analyse the risks and propose a risk management plan considering each of the following:§ The main business risks§ The priority of each of the risks, or combined risk§ Strengths and weaknesses of existing arrangements§ Implications of risk (may include political, economic, social, legal, technological and policy)§ Whether the risks could be avoided, reduced, shared and/ or retained and why§ Stakeholders and their level of risk (consider communication and obtaining support and input in the process)§ Critical success factors, goals and objectives for the business§ Implementing risk management strategies and policies (consider record keeping)
ensure your risk identification, analysis and improvement plan/ proposal (or action plan)is presented in a manner that would be accepted by senior management.
The plan must clearly describe the risk/s, proposed actions, resource needs, responsible persons, time frames, deadlines, expected outcomes and success metrics.