ChApter 8 | WRITE YOUR MARKETING AND PERSONNEL PLANS | 149
Cash Flow. Seeing the money come and
go on a daily and weekly basis is very
different from looking at a yearly Profit and
Loss Forecast (Chapter 6). You also want to
be sure that your business can survive long
enough so you can enjoy your profits. If
you filled out a Cash Flow Forecast such as
the one set out in Chapter 7, you should be
able to demonstrate that you can survive
foreseeable cash flow problems.
Write your risk analysis by first thinking
of the main dangers your business faces.
This shouldn’t be hard, as you have
probably been concerned about them for
some time. Some of these may be on the
list set out above; others will be unique to
your business. Once you have identified
the principal risks facing your business,
write out a plan to counter each. But don’t
bog yourself down worrying about all sorts
of unlikely disasters.TiP
A note of philosophy: This is the
stage when remorse or jitters may set in. You
may be thinking, “Am I really doing this? Think
of all the things that could go wrong. I could
lose everything!” Your purpose in writing
a risk discussion is to force yourself to face
your fears and concerns, not to scare yourself
out of going into business. If your rational,
intellectual analysis tells you that the risk
factors are manageable, proceed as hard and
fast as you can. You don’t have time for useless
and unnecessary worry. On the other hand, if
you really do get overwhelmed worrying about
potential disasters, pay attention to your
anxieties. They may be telling you that you
don’t have either the personality or knowledge
of your business to handle the risks you’ll take
in a small business.The purpose of this book is to help
you understand the dimensions of the
risks your business faces, but you as the
potential business owner must put your
money and belief on the line. Abe Lincoln
said it: “Be sure you’re right, then go
ahead.”