Environmental risk

To assess your business’ environmental risk, we need to look at your customers and the industry you’re operating in.

  • Is it a low, medium or high-risk industry?
  • Who are your main competitors?
  • How much competition is there?
  • Are there any special factors that will attract customers to buy from you rather than from your competitors?
  • How many main suppliers will you have, and will they let you buy goods on credit?
  • Does anyone else have similar products that could affect your business?
  • How easy is it for new competitors to enter the market?
  • Is your business seasonal?
  • Could any political event or policy have an impact on your business (eg strikes)?
  • How well do you know your target market?
  • Do you have a good location for your business?
  • Are your premises owned or leased, and do they allow for expansion and improvements at a later stage?
  • How many skilled and unskilled staff will you employ?
  • What percentage of your staff will belong to trade unions, and what’s the culture of the trade union?
  • If you have a manufacturing business, will you need to buy new or second-hand machines? How will this affect your cash flow?
  • Do you have good stock and quality control?
  • Do you have a place to store the finished product?
  • How sensitive is your business to the ups and downs of the economy?