subject: Business Plan Preparation Tips – Risk Considerations [print this page] Business Plan Preparation Tips Risk Considerations
Entrepreneurs today have certain personalities that crave success on an independent level. They want to excel on their own, but more and more entrepreneurs today are realizing that they may not be able to succeed without the help of someone who has seen great success in the past. One of the most useful categories of help you can find from an outside source is that of business plan preparation tips. If you are under the impression that there is no competition and no risk in the venture you are about to undertake, you require even greater help. There are always risks, and these must be considered when writing your business plan.
As a business owner, one of your biggest risks could be selling too many orders and falling behind the cash flow curve. While it may not result in the need to close the business, it could certainly slow you down and prevent you from allowing huge purchase orders in the future. This could also mean that you will need to be careful when accepting purchases on credit terms because sending out the huge purchase only to find out the credit was no good could certainly put you out of business immediately. One of the greatest business plan preparation tips is to include a statement like this in your plan.
Another risk that you may set yourself up for is relying on a single manufacturer for your product. If they go out of business, quit for any reason, or succumb to a natural disaster, your business will be finished. Another of the business plan preparation tips is to have triple redundancy on vendors to leverage your costs and protect yourself against any problems your manufacturers may face in these difficult economic times.
The final most common risk in starting your own business is that someone else will see your good idea and try to copy it. This is a normal activity today from unscrupulous companies who want to steal your customers. In reality, you can use the following business plan preparation tips to make this work in your favor. First, keep your prices low so you are always the go-to alternative. Also, if the competing company spends much of their time and effort on advertising, the consumer will become educated about the product. If you make yourself the most available and sell at a better price, you will gain business from your competitor's advertising.
