2.5.6 Fatal flaws
Risks are pitfalls that could unravel your venture. You need to identify risks and then take the necessary precautions proactively. Timmons (1999) refers to risks as fatal flaws. The presence of one or more fatal flaws makes an opportunity unattractive.
Fatal flaws can be caused by:
Markets that are too small
Markets with too much of competition
Markets where the cost of entry is too high
Lack of experience in the chosen industry
Management team with little or no integrity (honesty, fairness, ethics)
Barriers that cannot be overcome to a desired market
Inability to survive the death or incapacitation of the lead entrepreneur
Inadequate cash flow
Suppliers and distributors who are not dependable
2.5.6 Fatal flaws