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Sure, any good business plan discusses potential risks a company might encounter; you don’t want to be blindsided by an unexpected turn of events and you definitely don’t want to be dishonest or just naive when courting a valued investor.
So when we talk about risk in our formal plans, we typically mention them and then offer all the ways we can mitigate those risks as a matter of convention.
Additionally, investors are primarily motivated by data.
They aren’t carried by false optimism and generally have no personal investment in your idea.
Plus proactively thinking about and dealing with risk factors will keep you in the game for years to come.
One reason that startups encounter significant unanticipated problems is because entrepreneurs have a tendency to overlook certain small yet common problems when writing their plan.
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In essence, we tend to think big and strategically.
That, in turn, results in overlooking the situations that cause the most common losses, such as server outages, data breaches, or property damage.