A well-considered and realistic schedule demonstrates management's ability to plan the company's growth. It also displays management's ability to identify the critical tasks to be achieved by the company and how they interrelate. This section should contain a flow chart analysis that shows the timing of the company's product development and operational activities and when the company plans to meet the important thresholds in its marketing plans. Follow it with a narrative discussion of those events that are most likely to be delayed and how those delays could affect the company's overall schedule. Also, explain what management can do to make up for any schedule slippage that occurs.
Every venture capitalist knows that new businesses are risky.
They may not, however, understand which risks are most dangerous to the company or how management intends to neutralize them. This section enables management to discuss those risks and how it plans to overcome them. By doing this thoroughly, management increases its credibility with investors and demonstrates its foresight. Nothing is gained by omitting important items from the list of risk factors. Many managers find it useful when preparing to write this section to first put down in a separate writing the five risks most likely hurt the company is a material way and then to write out the practical steps the company is taking to minimize those risks.