Financial risks

- Every business faces financial risks, and you should…lay out in your business plan what those risks are,…and what you're going to do if they come to pass.…Some of the risks you might face:…What happens if you lose funding?…What happens if you don't get that loan…or the investment you were counting on?…What if you lose a big customer, or the economy turns south?…What if that marketing campaign you thought…was going to be huge turns out to not work?…What happens if you get sued for intellectual property,…or a major competitor emerges?…All of these are bad things that could happen…to your business, but if you think about them now…and plan for them, you can put contingency plans in place.…

You could do things like cut expenses or lay off staff.…You might seek additional loans or additional investment,…or the founders might put more money in.…You could drop prices, market more,…offer retention discounts for some of your customers.…You may even say we would sell out to…a competitor or partner with another firm.…