XIS3_35_William

Topic: Risk owning a business

I. Introduction
1. In the modern era, many people want to open their own businesses and
become entrepreneurs instead of working for others. People usually open their own
business because it is their passion and don't think about its risk, such as the market, the
competitor, etc.
2. If you own a business, you have many types of risks such as founder risk, product risk,
market risk, competition risk, and sales execution risk. You have to know the risk before you start
the business so you can minimize the impact of the risk.
3.The demand, market, and how many competitors have the same
business should be considered before starting a business so that the risk is reduced and the odds of
the business being successful are increased.

II. Body paragraph

1. To help you understand, here are five types of risk.

2. The first one is founder risk, which relates to the founders of the company, how they will
work together, and their relationship. The second type of risk is product risk, which deals with the
engineers who create new products for the company and how they will recruit others. The
third type is market risk, which deals with the problem the product will solve and how consumers
will react to it. In the fourth risk category, you look at how you differ from other similar
organizations and companies. In the fifth category, you determine how to sell your product to
consumers by presenting them with a solution to their problems.
3. All of these risks are important factors in getting ready to start your own business. Being
an entrepreneur means that you are willing to look at those risks and decide if the calculated risks
are a good idea for your business. Next, prepare to take the plunge.

III. Body paragraph

1. However, owning a business that sells goods or services carries other risks. And there are pros
and cons. 2. Generally, a company that sells a service has less capital than a company that sells
goods. For example, the capital to open a hairdresser is not large, as the capital to open a hairdresser
is equipment such as scissors, clippers, combs, and haircuts. The success of a service company
depends on how good the service is for its customers.
3. The risk of owning a business that sells goods is higher than services because it depends on the
price of raw material, demand, salary of the employees, because in Indonesia is increase every
year. for example now cooking oil is hard to get in Indonesia because the supplies is decrease but
the demand increase, the supplies decrease because the raw material and the salary increase but
the government push the company to sell the cooking oil for the same price, that’s why the
company stop producing cooking oil.

IV. Body paragraph

1. Topic: The Risk owning a business
2. Evidence: before open a business we need to know the risk and can minimize the risk.

V. CONCLUDING PARAGRAPH
1.Restate thesis: some people prefer to sell service or goods but both have different risk and
different advantage and disadvantage

2. Conclusion: Before starting a business, people need to know the risks, decide whether to sell
goods or services, and know the risks of each business. If you already know the risk, the owner
can minimize the risk.