Risk Assessment for Business Idea

¶ … Risk Assessments

Milestone Schedule

Final Business plan created

Begin app production

Set up social media & Android accounts

Startup financing acquired

Prototype app developed

Beta-testing

Hiring of marketing personnel

Secure distribution channel through Android

Commence sales

Start work on iOS version

Beta-test iOS version

Revisit marketing plan

Evaluate strategic plan

Launch iOS version, start work on Android v 2.0 or MS version

The cycle for the milestones is based on a fairly short development time frame. The key elements to this business are to create the app and to sell the app. It will take approximately 2-3 months to create the app, but the marketing strategy will begin before that time. The initial round of financing will be used mainly to support the marketing effort, and possibility to add another developer, allowing the company to accelerate the time frame for launching the iOS and Microsoft version of the app.

Contingency Plan

One of the major risks lies with the development of the app. If there are any delays with this, the other elements of the time frame might be challenged. In particular, the app's development schedule is linked to earning revenue, which will be necessary to repay whatever financing has gone into the development and marketing of the app. The contingency plan will be to add additional developing talent to keep the app on schedule.

Another major contingency is if the company cannot get the financing it needs. This will force the company to launch a very bare bones marketing campaign, which could be challenging since we are targeting parents, who are less tech savvy. It is important to find ways to minizme the marketing expesnes in order to minimize this risk.

A further risk is that the product does not sell as well as expected. The company will need, prior to launch, to have a drop dead date where if the product is not selling as expected, and sales are not growing at an acceptable rate, that it would close up shop. This might be forced upon the company if it runs out of money but management needs to have an exit strategy as a contingency for this.