Risk Assessment and Contingency Plan

Lack of entrepreneurial skill

Do you have any relevant experience? Have you chose the right location? Can you communicate effectively with your customers (which method did you choose)?

Competitor actions

What will your competitors do in response to your new enterprise? Will they lower their prices? Will they advertise more aggressively or offer promotions you can't? What will you do?

Unexpected costs of production

Have you planned the quantity and costs of the resources realistically? What could the impact of BREXIT have on your enterprise? Could supply and Demand affect the costs of the materials you need?

Sourcing raw materials

What could happen if there was a shortage on the raw materials you require? Could BREXIT cause a delay if you are purchasing them from abroad?

Quality control issues

To achieve a positive Word of Mouth, new customers need to have their expectations met. If there is a problem can your enterprise afford to replace or repair the faulty goods?.

Lack of Customer interest

Have you carried out effective market research? Is there demand for your product? Is there too much local competition?

Contingency plans do not reduce or eliminate risks but it can help to reduce the impact should the problem arise as the enterprise will know how to deal with it.

For each of your risks you need to write a contingency plan.