Identify risk. You want to be prepared to mitigate risk. A brainstorming session just for risk will be useful. You will want to identify as many aspects as you can to insure you are aware of the potential risks associated with your venture, whether its financial risk or risks associated with being the first to offer your business in a given area. Flesh this one out.
Risk Section Example
As in any business venture, SI Co acknowledges that there are risks involved in founding, owning and operating a business. These risks could potentially affect the shareholders and stakeholders of this business. They involve the financial risks taken on by Susan and Brendon Trip and their investors in the event that SI Co becomes insolvent as well as other risks including the successful operation of day-to-day business and standard risks that affect electrical contractors in general.
Potential Management Risks
A potential risk to this business is its ability to operate successfully. Susan Trip’s (owner) duties will involve managing the day-to-day business and operations. This will involve an understanding and knowledge of basic accounting practices and business organization. She will also be responsible for managing any accounts receivable and accounts payable as well as billing customers if necessary. An understating of how an electrical contractor operates business is necessary.
SI Co understands that although a solid business operations background is preferred, the resources and experience that SI Co has access to will help to mitigate this risk. SI Co is currently receiving advisement from the Small Business Development Center. This resource can offer advice on business operations. Further lessening the impact of this risk is the workplace experience of Brendon Trip. In having over fifteen years of experience in the field, Brendon has an intimate knowledge of workings of an electrical contractor. Furthermore, Brendon’s connections and relationships with other operating electrical contractors, other union electricians and the electrician’s union hall, offer SI Co access to any needed advice on operations.Continue reading this Risk Section example.
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