Taking risk is what all entrepreneurs do and we definitely love it, but planning for future risk is important too. Understanding risk is a very crucial part of the business plan process. Thinking about it essentially shows us what could go wrong and makes us think of the possibilities of solving them when they do arise. It's like future planning in a way. Like Tim had told us in class, the best way to go about this is with a beverage of your choice and on the couch.
I first thought about all the bad things that could happen. After I felt I had a comprehensive list and with ideas getting too bizarre (eg. volcanic eruptions near the manufacturing plant?) I decided to focus on the other aspects. How would the risks I thought of affect the company and what would I do to to combat them. This process actually got me thinking a lot and forced me to do research into areas that are really not something I was even considering. I have actually targeted a particular manufacturer of UVc-LED's but what if the deal doesn't go through. I did a lot of research on potential partners and spoke to a few people in the industry too as to how these risks are tackled. An aspect I wasn't even thinking of before is the money. What if we fall short of money at some point. How do we generate more capital and who does it? All these risks are analysed in the complete business plan for LUV-water.
Well its pretty obvious its impossible to plan for and predict everything that may happen but all we can do is prepare for the worst which is what this exercise does very well. I would like to share an amazing story of a 20 something Indian boy who like a lot of people got stuck in an engineering college but took a risk and decided to do something himself.
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