The aim of this last component of the business plan is to demonstrate your knowledge of inheritable or potential problems and risks and to show your willingness and ability to face them and deal with them.
- What are the inherent and potential problems , risk and other negatives your business may or will be faced with
- Will your intended business face any stringent regulatory requirements
- What potential legal liability or insurance problems might you face
- How can you avoid this problem, manage them or minimize their impact
- Can any problem be turned into opportunities?
Types of critical risks and problem
The are three types of critical risks and problems that you may wish to consider
- Inevitable risks and risks and problems
Describe the nature of the problem and risks that your venture will be faced with, discuss how you will avoid or minimize their impacts
- Potential risks and problems
Discuss the circumstances and situations that would prompt this risks and problems and how you will deal with them if they did
- Worst case scenario
Give a worst case scenario of all inherent and potential risks that your intended business may suffer. summarize the consequences and what, if anything could be salvaged or recovered if these risks materialize .