The Model Structure of A Business Plan VI
10. Main risks and exit strategies
Risks
We could distinguish two types of risks: market themselves and the intrinsic project itself.
Basic risks affecting the market:
- Growth lower than expected.
- Uncertainties of the high technology sector, which can lead to significant discontinuities in short periods of time.
- Cost more than expected.
- Risks of the business itself.
- Unexpected input of a competitor.
- Lack of fit between the product and needs to cover the target.
In assessing the risks that may affect the business, it is necessary to include specific measures to address these risks and an alternative assessment of the company if you vary some of the key parameters of the model, such as user growth rate , etc.
In any business plan is necessary to include a chapter on possible strategies to include contingency in case the business does not meet the objectives are.
Some of the most common contingency strategies may include:
- Partnership with one of the major global leaders in the Internet environment or with a consortium of them.
- Total or partial sale of the company to a company’s most powerful industry that can drive growth for the company.
- Sale or exploitation of technology and patents.
- Sale of the customer base.