Quite often when I'm in a meeting with a client and his/her potential investor(s), somebody draws attention to the SWOT Analysis and the Threats posed to the business. (SWOT stands for Strengths, Weaknesses, Opportunities, and Threats). These threats often pose one of the hidden risks to the investor's money. The investor is always looking to mitigate those risks; so, what can you do?
When you are writing your business plan and get the SWOT analysis, pay special attention to the Threats. Think like an investor whose money is at risk. Ask yourself these questions:
1. Is there risk of a copycat stealing this idea?
2. Is there a threat of a big company (Walmart?) stepping into my market?
3. Is there a threat of government intervention or regulation (like a smoking ban)?
4. Is there a risk of intellectual property theft?
5. What about disasters or poor economic condition? A terrorist attack?
If this some serious thought as you write your plan because you know your investors will!
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