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BUSINESS
RISK
Economic Risk – Risk that is associated with
fluctuations in the economic cycle. One can
graph the peaks and troughs of business
activity, keeping an eye on trends in business
and consumer confidence, interest rates and
growth patterns.
RISKS ACCORDING TO BCI
RISKS ACCORDING TO BCI
Industry Risk – Risk relating to a particular
industry. This can be due to technological change
or anything specific to that industry. It focuses on
external not internal factors of the business. Such
industries impacted recently include the music
industry, publishing, video stores, photographic
finishing and the like and even wholesaling.
Personal Risk – Risk associated with the investor
looking to invest in a business in which he or she will
play an operational role. It can relate to age, health,
stage in life & personality of the investor. It also relates
to the needs the business will place on the operator
and the ability of the operator to meet those needs.
RISKS ACCORDING TO BCI
Legislative Risk – Risk associated with
investing in a business that is prone to change
due to government legislation pertaining to that
industry. Such businesses have included
newsagencies, training organisations, child
care institutions, liquor shops and hotels.
RISKS ACCORDING TO BCI
Every one of these risks can be measured and
accounted for by paying attention to the cycles that all
businesses move through. We may not be able to
predict the future but we sure can have a better guess
if we are informed and watch the trends.
 
RISKS AND CYCLES
The Economic Cycle. Chart and watch the movements
in Interest Rates, Consumer Confidence, Stock Market
Indices, Business Investment plans and you will soon
see where we are in the cycle. You don’t buy at the top
of the cycle and don’t sell at the bottom. Sell just before
the top and buy just after the bottom. Or close to it.
RISKS AND CYCLES
The Industry Cycle. This closely follows technology and
the changing tastes of people. Look at what has faded
and disappeared into history. Why did it happen? What
can you learn from that? Is your industry threatened by
any change on the horizon? Are people’s habits
changing? Does change appear to be long term?
RISKS AND CYCLES
Your Personal Cycle. You will or have reached your
peak. Your enthusiasm of early years gives way to
experience & wisdom. You want to be selling when
there is still an ability to hand over the business and
transition the buyer on the road to prosperity. You want
to be in sell mode before your stamina and health wane
RISKS AND CYCLES
The Legislative Cycle. Governments legislate according
to perceived inequalities or to gain advantage over their
opponents. At times certain things like education or
child care take prominence & you can see legislative
change coming. The chatter starts before the laws
change. Listen to the chatter & act ahead of the game
RISKS AND CYCLES
BCI Business Brokers
Tony Arena (Managing Director)
3/1 Alexander Street, Crows Nest, NSW, 2065
Phone: +61 2 9439 3399
Mobile: +61 411888148
Email: tarena@bc.com.au
www.bc.com.au
For Advice On Business Valuation
For A Free Consultation On
The Value Of Your Business
Visit our website:
For help in maximising your business value
take a look at our product here
www.bc.com.au/maximise.html
Maximise Your Business Value

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Risks in Business

  • 2. Economic Risk – Risk that is associated with fluctuations in the economic cycle. One can graph the peaks and troughs of business activity, keeping an eye on trends in business and consumer confidence, interest rates and growth patterns. RISKS ACCORDING TO BCI
  • 3. RISKS ACCORDING TO BCI Industry Risk – Risk relating to a particular industry. This can be due to technological change or anything specific to that industry. It focuses on external not internal factors of the business. Such industries impacted recently include the music industry, publishing, video stores, photographic finishing and the like and even wholesaling.
  • 4. Personal Risk – Risk associated with the investor looking to invest in a business in which he or she will play an operational role. It can relate to age, health, stage in life & personality of the investor. It also relates to the needs the business will place on the operator and the ability of the operator to meet those needs. RISKS ACCORDING TO BCI
  • 5. Legislative Risk – Risk associated with investing in a business that is prone to change due to government legislation pertaining to that industry. Such businesses have included newsagencies, training organisations, child care institutions, liquor shops and hotels. RISKS ACCORDING TO BCI
  • 6. Every one of these risks can be measured and accounted for by paying attention to the cycles that all businesses move through. We may not be able to predict the future but we sure can have a better guess if we are informed and watch the trends.   RISKS AND CYCLES
  • 7. The Economic Cycle. Chart and watch the movements in Interest Rates, Consumer Confidence, Stock Market Indices, Business Investment plans and you will soon see where we are in the cycle. You don’t buy at the top of the cycle and don’t sell at the bottom. Sell just before the top and buy just after the bottom. Or close to it. RISKS AND CYCLES
  • 8. The Industry Cycle. This closely follows technology and the changing tastes of people. Look at what has faded and disappeared into history. Why did it happen? What can you learn from that? Is your industry threatened by any change on the horizon? Are people’s habits changing? Does change appear to be long term? RISKS AND CYCLES
  • 9. Your Personal Cycle. You will or have reached your peak. Your enthusiasm of early years gives way to experience & wisdom. You want to be selling when there is still an ability to hand over the business and transition the buyer on the road to prosperity. You want to be in sell mode before your stamina and health wane RISKS AND CYCLES
  • 10. The Legislative Cycle. Governments legislate according to perceived inequalities or to gain advantage over their opponents. At times certain things like education or child care take prominence & you can see legislative change coming. The chatter starts before the laws change. Listen to the chatter & act ahead of the game RISKS AND CYCLES
  • 11. BCI Business Brokers Tony Arena (Managing Director) 3/1 Alexander Street, Crows Nest, NSW, 2065 Phone: +61 2 9439 3399 Mobile: +61 411888148 Email: tarena@bc.com.au www.bc.com.au For Advice On Business Valuation
  • 12. For A Free Consultation On The Value Of Your Business Visit our website:
  • 13. For help in maximising your business value take a look at our product here www.bc.com.au/maximise.html Maximise Your Business Value