Building a Case for Mitigating Risk

President Lincoln said “I will prepare myself then when my opportunity comes I will be ready.” How many entrepreneurs are ready when opportunity knocks? As an entrepreneur do you “wing it,” go with a gut feeling or do you build a case that justifies to you, your advisory board and others as to why you should allocate your company’s resources to a particular opportunity? Do you understand the risks if things go wrong? Do you understand the downside? What have you done, if anything to mitigate risks? Too often entrepreneurs enter into major transactions without understanding the associated risks.