The three risks of business model include

The three major risks of business model include policy risk, capital risk and operational risk.

I. Policy risks

Regulatory policies of the sub-sectors where the project is located, such as whether it is allowed to be sold on the Internet or what qualifications are needed to operate.

Second, the capital risk.

1. investment risk: there is uncertainty whether the project can obtain the expected income. Because renting a venue, running a company and recruiting employees all require investment, if the project fails to operate, it may be wiped out.

2. Cash flow risk: the uncertainty of income leads to the uncertainty of cash flow. In addition, if the income is relatively certain, the corresponding cash flow may not be able to turn around in time.

3. Liquidity risk of funds: both the development and expansion of the project need funds, which requires higher financial planning of entrepreneurs.

4. Financing risk: The project needs more funds at the initial stage, but the entrepreneur may not get enough funds in time to support the development of the project.

Three. operational risk

1. consumers: consumers may not know the company's business and products in time, and their acceptance of the company is not high.

2. Time interval between investment and return: The time interval between investment and return makes it difficult for the company to recover its investment quickly.

3. Uncertainty of competition: the market is ever-changing, the demand is changing, and the competitors are changing. For start-ups, there is great uncertainty.

4. Management risk: The system of start-ups is not perfect, and all aspects of resource management are not completely scientific, which may cause great internal friction to start-ups.

5. Marketing risk: The whole marketing plan may not bring the expected benefits. If there is a major mistake, it will affect the company's overall sales performance.