Business Plan Threats And Risks

Business Plan Threats And Risks: Every business faces lots of threats and risks. If you carefully evaluated every single threat your business faced you never would have started your business in the first place. So don’t even try to describe every single risk you face here. Instead give particular attention to the most important threats, those most likely to happen and/or those that could do the most damage. The nature of threats will vary widely from one business situation to the next. However, new business people mostly, tend to underestimate possible competitive reaction to either their market entrance or business strategy. The fewer direct competitors that you face, the more chance a competing business will respond to your business initiatives. If there is one lawn mowing business in town and they charge $40 to mow a lawn and you come along and start charging $20, the established business is probably going to react. On the other hand if there are fifty lawn moving businesses in town there is less likely to be a competitive reaction.