A presentation I gave to the CUCG AISEC group on some risks and challenges to consider in the preparation of a Business Plan.

1. Business Plan: Risks & Challenges
Kofi Kafui Kornu
@qaphui
http://dominicmary.blogspot.com

2. What’s a Business Plan?
• A summary of how a business owner,
manager, or entrepreneur intends to organize
an entrepreneurial endeavour and implement
activities necessary and sufficient for the
venture to succeed.- Wiktionary

3. Risk Analysis
• The identification and assessment of factors
that may hinder the progress of a project (in
this case, the start-up) or the achievement of
a goal.
• It also helps to define preventive measures to
reduce the probability of the risks arising, or
possible solutions to such risks.
• REMEMBER: “If you fail to plan, you plan to
fail”

4. Why do people shy away from risk
assessment in a Business Plan?
• Start-up entrepreneurs are afraid of scaring
off potential investors!
• Others think a SWOT Analysis is enough.
IT. IS. NOT!

5. Why the need to assess risks
Shows investors:
•That one has thought through some risks
•That the entrepreneur knows how to plan for
risks
•That the business plan (and therefore the
business) can survive

6. Types of Risks
• Product risk: risk that a product cannot be
created. Example: Biotech companies
• Market risk: risk that market may not grow as
expected.
• People risk: occurs when the company depends
on having ‘certain’ employees
• Financial risk: risk of the company mismanaging
funds or running out of money
• Competitive risk: risk of competing
service/product

7. Sample risk questions:
• What if your KEY employees quit?
• What if demand for your service/product decreases?
• What if your major suppliers run into financial
difficulties?
• What are the technological advances in your
business and are you able to keep up?
• What if you run out of cash? How do you pay bills?
• In case of injury to you, do you have someone to
take over management role(S)?

8. Business Plan Apps
• Enloop (web-based)
• StratPad (iPad only)

9. References:
• Robbins, Steve. (2004). Retrieved from
www.entrepreneur.com/article/49042
• Schlough, Charles. (2001). Knowing Your
Market – The Most Challenging Part of a
Business Plan.

10. Resources
• Steve Blank’s Lean Launchpad Course on
Udacity’s website
• Business Model Canvas