Please respond to the following:

• Imagine you are considering opening a business. Share the type of business you would open. Then, create a list of the five most significant risks that you must address prior to making your decision regarding the viability of your venture. Justify the risks.
• After posting your response, respond to at least one of your classmates on their suggestions.

Please respond to the student’s comment below:

Let’s begin this week’s discussion by understanding the purpose of risk management. Risk management aims to identify potential problems before they occur or, in the case of opportunities, to try to leverage them to cause them to surface, and risk-handling activities may be invoked throughout the project’s life (Purpose of Risk Management, 1).

This is a great discussion question because I am beginning my first stages of opening several businesses at once. The one business I would like to discuss is the fact I am opening a laundry mat service within the area I am residing. Once I realized that this course was coming for me, it bought into my mind that I had to determine what risk I would be taken in establishing the business. I came across a few risks: location, security, equipment repairs, chemical, and water usage, and utilities. Let’s begin with the area. When I think about the risk in a area, the first thing that comes to mind is the crime rate. Suppose customers are afraid of venturing out, either in the morning, during the day, or especially at night, then the likelihood of coming to the business. The location can affect the more expensive places to live as well. An increase in rent and renewing leases may cause customers to leave the area. This will decrease revenue. Only with the location, the laundry mat must have security. A laundry mat must provide customers with security and sufficient lighting. It must be able to draw customers into the business and not run them away. The risk of a customer going to another location because they don’t feel safe. Also, let’s think about the amount of cash within the business. This could potentially draw criminals, which would give the reason for potential customers to go to other businesses.

Repair on a laundry business is continuously ongoing. The business owner must have a budget that incorporates a plan for repairs from machines wearing down because of wear and tear to dryers possibly burning clothes during the drying cycle. If an owner is a repair person or contract, please, there must be a plan. Another alternative would be to attend a repair school. If a machine isn’t working, there isn’t any revenue being made.

You must have utilities to get the washer, dryers, and coin machine to operate. Utility rates change month to month, and the business relies heavily on the utilities to run the water and dryer systems and sewage. Researching the past few years of utilities will estimate how much the utilities would cost monthly.

Lastly, a risk I discover is the chemical, wastewater, and water usage. Commercial laundromats use all kinds of chemicals, and according to the Environmental Protection Agency (EPA), certain detergents, colorant agents, and fabric softeners can pose significant environmental hazards (Laundry Environmental Issue, 1). As they are released into the ecosystem, the breakdown of chemicals can cause several health issues. A laundry business owner must have an EPA certified safer choice product to protect the customers. Regarding the water usage, researchers at the University of Michigan found that the typical washing machine uses around 27 gallons of water per load and as much as 13,500 gallons of water per year, and that’s as much water as the average human will consume during their lifetime – used by one washing machine (Laundry Environmental Issue, 1).

Resource

1. Laundromat Environmental Issues. (2019, 07 24). Retrieved 04 23, 2022, from Laundry Solution Company: https://www.laundrysolutionscompany.com/laundromat…