It’s known that even the best businessplan? Marketing plan or any other can’t give you a guarantee of success. You should realize it in practice. Just here reporting of all possible risks which can appear during the realization of the project are of great importance. Expert and exact analysis of project’s risks reflected in business plan on the stage of preliminary discussion with investors shows the functional authority of the initiator of the project and influence well on the results of further discussions.
For every project or for just existed company risks mean the possibility of beginning of unfavourable event which cause the loss of some resources, decrease of the profits and appearance of additional, unplanned expenses. Usually all possible changes are taken into account while prepairing this section of business plan. Also some financial projections directed on the prospect are carried out. Quantitative and qualitative analysis are carried out for this purpose.
During the development of business or marketing plan you should have a clear vision of in what sphere business proposals of your company are: if they are in the area of high-risk capital investments with high high rate of profits and incomes or in the area of lower risk with small profits. In any case investor is interested most of all in the guarantee of return of outlayed capital. So it’s necessary to reflect all this in your business plan.
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There are a great amount of different risks in business. Naturally it’s impossible to set aside all of them but the most important should be reflected in the project. The main task of businessman is to define the possible risk quantitively, compare the size of the risk and to chose the variant which is closely correspond to the business strategy of risk of your company. In other words the analysis of risks should be carried out.
This analysis begins with the reveal of sources and causes of risks. Also it’s important to define what sources are prevailing in order to concentrate all attention on them.
According to the source of incurrence risks can be:
– properly economical;
– related with human factor;
– dependent on acts of nature.
According to the cause risks can be:
– uncertainty of future;
– unpredictability of partner’s behaviour
– lack of information.
The structure of the section of business plan where risks are decscribed can be the following:
– Reveal of the whole of types of risks – definition of the share of every simple risk, definition of possibility of risk’s appearing and so on.
– Organization measures on prevention and neutralization of risks.
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Illustrative business plan samples
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