People who read your business plan will be looking for evidence that you have considered and taken steps to mitigate against risks.
There are a number of ways to undertake a risk analysis but a SWOT analysis is usually appropriate for a business plan for a start up.
This exercise is best carried out by a team rather than an individual in order to get a more comprehensive overview of the enterprise. To do this exercise, identify and list all the Strengths, Weaknesses, Opportunities and Threats.
Once you are satisfied that your lists are complete, look at all the weaknesses and threats and consider what you can do to eliminate, reduce or minimise them.
Finally, consider contingency plans and exit strategies. For each of the things that could go wrong, what would you do if it did? How could you scale down or close down without risking what you and others will have invested?
Refer back to the Critical factors and risk analysis from your feasibility study in the critical factors to your success section.
If you didn’t manage to do this, you must do so now by visiting the above link.
Use the completed feasibility study template to help you populate the risk analysis section of your business plan, using this template:
- SWOT analysis
- Risk analysis
- Contingency plans and exit strategy
The information and tools in this section have been developed by our colleagues at Co-operative Assistance Network.Updated: 26/03/2019