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Business Plans that Work: A Guide for Small Business 2/E, 2nd Edition by Jeffry Timmons, Stephen Spinelli, Andrew Zacharakis

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9 THE CRITICAL RISKS and OFFERING PLAN SECTIONS

Critical Risks: Understanding the Critical Drivers to Your Success

Every company faces a number of risks that may threaten its survival. The risks are enhanced for new ventures. Although the business plan, to this point, is creating a story of success, there are a number of threats that readers will identify and recognize. As such, the plan needs to acknowledge these potential risks, otherwise investors will believe that the entrepreneur is naive or untrustworthy and may possibly withhold investment. It is also important for you to understand these critical risks because they most often are directly related to assumptions that will drive your venture’s success or failure. For example, a common critical ...

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