Risk Assessment Business Plan

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Although all companies face uncertainties associated with the general economic environment, some enterprises are less business cycle sensitive than others.

The economic cycle risk of a food company, for example, may be less of a concern than is the case of a construction company.

In many cases, operations cannot commence until sufficient funds are raised to fund the acquisition of property, plant and equipment and initial working capital requirements.

The risks associated with fixed cost structure of the business are company-specific because they vary from high to low, depending on the nature of the business.

In the marketing plan, the company’s action plans for overcoming the competition are outlined.

Some types of businesses are more subject to litigation risks than others.

Potential threats include unexpected problems that may develop in quality control, distribution, marketing and promotion and other areas.

Start-ups and early stage companies must also build relationships with customers and attract customers from competitors.

The important thing is to identify which of these general business challenges could impact the business and have strategies to deal with them.

Companies should have strategies to stabilize their business and continue to succeed despite unexpected changes in the economic environment.

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