Using your own business plan venture, after reading Chapter 23:
1. Discuss seven of the most significant risks your proposed venture faces in detail.
2. Discuss possible ways each of these risks can be managed.
One essential skill set in small business management is negotiation. The ability to
Negotiate with the firm’s stakeholders is critical to a successful business. This
Assignment provides experience with this critical skill set.
Read pages 510–511 in the textbook and any supplemental reading you find on the
Internet regarding negotiating skills and then respond to the following:
You are applying for a business startup loan for your new venture. A bank officer
tentatively agreed to loan you the $75,000 accepting a second mortgage on your home
as collateral based on your business plan. Your home was appraised three years ago
for $250,000 and you owe $165,000 on the first mortgage. He is now having second
thoughts based on two things.
First, he has discovered that you encountered some financial difficulties that caused
you to fall behind on your debts 7 years earlier. You thought that this was not supposed
to remain after 6 years. You struggled back then after losing your job but finally paid
everything in full years ago. For the past 6 years, you have had an excellent payment
history. You have $25,000 in savings with this bank.
Second, he is concerned that your home has actually lost value since the appraisal.
However, you believe that the improvements that you have recently made to the home
including a new kitchen and bathroom have actually increased the value!
Part One – What are some factors you should consider when negotiating with the
Part Two – What are some factors the banker should consider when negotiating with
you? Unit 8 [Small Business Management]