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Risks & Conclusions
Every business has some degree of risk to it. It is important for you to think through and outline possible risks in your company. This will demonstrate that you understand the risks and, to the extent that you can, have made allowances for them. Detail how you plan to minimize or address the risks inherent to your business. Remember that the most important reason for writing a business plan is that it is an important tool to help you start and manage your business. Feel free to incorporate all identified risks within their respective sections of your business plan and make them clearly understood by any perspective reader of your business plan. For example, you can discuss human resource risks such as not being able to find skilled labour. Be honest about your risks and take them seriously because you can avoid many problems by thinking ahead.
Consider the following:
- What are the possible risks within your industry? What are the possible health and safety risks in your business/work site?
- What if you discover that the business you bought carried liabilities? For example, what if the business you leased or bought has an outstanding balance in its account with your provincial workers' compensation board/commission?
- What if the demand for your goods or services decreases?
- What if the number of competitors increases?
- What risks do you face in producing your product or service?
- What risks do you face with the marketing plan you have outlined?
- What if your major ad campaign turns sour?
- What human resources risks do you face? Consider your management team, advisors and your employees.
- What if your key employees quit? What if they get seriously hurt on the job?
- What if you run out of cash? Where else would you go?
- What if your major supplier has financial difficulties? What other suppliers exist?
- What, if any, environmental risks does your product or service face? Do they conform to environmental rules of government, municipality, etc..?
Conclusions
Having considered the risks and your ability to deal with them, what's the verdict? Remember, your business plan should be as vital and strong as the dream you have for your company. Clearly restate the goals and objectives for your business. If the purpose of your business plan is to get financing - state the amount required and what it will be used for. Your conclusion section should be concise, clear and leave a positive impression.
To see the Risks & Conclusions section of a sample business plan, click on any of the company logos below:
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