Sample Business Plan
ExpressX Warehousing & Distribution | Risks and issues
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EXPRESSX WAREHOUSING AND DISTRIBUTION
SERVICES Sample Business Plan Current Page: 36 Business plan outline Page ... 30 31 32 33 34 35 36 37 » Next Page |
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| Risks |
Description |
Mitigation
of
risks |
| Finance
risk
|
The
financial
risk
is
observed
from
the fact that the contribution to be
made the owner is considerably less as compared to the required outside
borrowings that are to be sourced from banks in form of a loan. |
The
business
owner
will
retain
at
least 60% of the profits into the
business. This will be done in the first year of operations so as
to mitigate the risk within the short term. |
| Market
risk
|
The
market
features
well
established
competitors
and therefore ExpressX
Warehousing and Distribution (Transportation) Services will
have to compete for market share. The market risk may also surface from
the fact that most manufacturers, wholesalers, retailers and other
parties likely to utilize warehousing services already have in house
warehouses and handle their own distribution. |
The
business
will
seek
assistance
from
small business support agencies such
as the National Youth Development Agency for assistance with a
comprehensive marketing plan and strategy. The marketing plan and
strategy will help the business compete with greater strength and
position it to attain a greater customer satisfaction rate. |
| Human
resource
risk
|
In
terms
of
human
resource,
the
risk may be a result of the business not
being able to recruit the right employees and retain quality employees.
High quality employees may prove to be costly to retain. |
The
human
resource
risk
will
be
mitigated by actively pursuing learnership
and development activities. The business will seek assistance from SEDA
for skills development. |
| Operational
risk
|
The
business
might
have
capacity
and
equipment constraints as some goods
for storage require special storage facilities. There may also be a
risk of not being as efficient and effective due to lack of advanced
logistics software and other technologies. |
The
business
will
in
the
initial
stages focus on storing merchandise that
does not require specials storage facilities and then pursue advanced
storage facilities at a later stage. The business will strive to source
affordable support technologies. |
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