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Threat Assessment in a Business Plan
You cannot predict the weather in a business plan.
Threat Analysis or Assessment is Necessary
All good business ventures evaluate threats to business. Threat assessment is part of our modern world. But we do not need to call it that. And we do not approach it like the rest of a business plan.
We do not need to sell that the risk is there and we should not use a word like "threat".
Call it "downside contingencies" "marginal risk assessment". The example following still has a lot of problems and I use it for you to pick them out. Here are some factors already removed.
Bold print captions. Highlighted anything. Any cliche's at all. Any full clarification.
But I left in the reference to a drought so bad it would dry up a large well. Just so you would catch it and to illustrate that we do not include earthquakes, atomic bombs or terrorist attacks. Lava flows and hurricanes are generally left out also along with the plagues of Egypt.
And I left out any reference that 90% of foreseeable problems can be insured against and will be. Like massive coronary and death of our 34 year old key CEO!
I hope just by looking you can see that your need to add this into a business plan but it need not be sold to a potential investor.
See the obstacles but do not dwell on them
There are always mountains to climb and valleys to flatten!
Critique at will it is what I get paid for. Comment below.
The organic and locally produced trends still have a lot of steam and the hurdles for supply to keep up with the demand growth are projected to last for years to come. Eric’s Organics does not feel that there are significant market threats
Several regulations are standing in the way of developing Aquaponics projects in Eric’s County, among which:
- Expensive and confusing building permits on greenhouses.
- Unreasonable and expensive inspection fees; foundation, structural, electrical inspections and fire department approval requirements.
- Strict zoning and setback laws.
- Officials seem unclear about what is acceptable in the agricultural industry, many “grey” areas.
- Harsh laws on fish farming from local agencies and the Environmental Protection Agency.
Eric’s Organics has worked diligently with a local lawyer and alerted the chairwomen of the County of Eric’s Board of Supervisors, Erica E. Because the need for low water consuming farming is a priority in the County, little resistance has been encountered so far. To the contrary, County employees have been quite helpful. Mr. Eric also attended an Eric neighborhood committee, which carries a lot of weight in the County’s decision process. The project was well received and they expect a second visit with the following information:
- Environmental impact, construction plans,
- Water usage and availability of wells,
- Impact of traffic,
- Impact on immigration.
Eric’s Organics will continue to work with the community to respond to their concerns and add value where possible.
Regularity threats can emerge despite the most cooperative approach and Eric’s Organics will hire a consultant when the circumstances warrant it. His name is Ralph Nader and he has extensive experience in building greenhouses and securing permits in the County of Eric’s.
Damage from weather and pests
As all agricultural operation, weather and pest infestations are a threat to the profitability of the operation. Winds and damage the structure and illness to the plants or fish can adversely affect production.
Eric’s Organics has taken the utmost care in creating conditions to alleviate this risk. The idea to plant an orchard was done primarily to protect the greenhouses from high winds (and also to alleviate possible fear among local resident on the greenhouse creating visual contamination). The choice of a positive induction ventilation system was also chosen in part for its ability to limit insect penetration into the greenhouses.
Water remains an issue. Even after years of drought, there is still sufficient water in the wells to run an aquaponic operation. Should the drought persist and that water source disappear, Eric’s Organics would have to buy all of its water. This would significantly reduce the profitability of the operation but it would still be viable. The greenhouses will be equipped to collect rain waters and condensation to maximize natural resources and reduce any cost that could arise from a more severe drought.
Sales Projections Disruptions
Even though it is clearly established that there is a supply shortfall in the market, any shift in consumer preferences would adversely affect the numbers in this business plan.
This threat is alleviated by research into salt water crops that can be turned into oil used in various industries. The size of Eric’s Organics operation is sufficient that it could also convert into producing finished goods if the fresh market is reduced.
You can get in the game or sit on the dock of the bay, that is cool either way, but do not be an idiot.
Is this blank page you?
You would be stealing.
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