Definition

Spotting and handling potential problems that could hurt the business. Simple plans help avoid surprises and keep things steady.

What to consider

  • Prioritize projects that drive growth.
  • Balance short-term needs with long-term goals.
  • Reallocate resources as business priorities change.

Real world scenarios

  • A startup divides its limited funds among marketing, R&D, and operations based on potential ROI.
  • An entrepreneur allocates staff time to high-impact projects after reviewing performance metrics.
  • A small business adjusts resource distribution to meet seasonal demand shifts.

Related terms

Entrepreneurial Finances