Risks Specific to Eliot’s Adult Nut Butters
1. Limited Operational History under current business model. There can be no assurances that the company will be able to achieve and sustain the necessary cash flow to conduct day to day operations.
2. Price fluctuations in nut and seed markets
3. No Assurance of Profitability. There can be no assurance that the Company will generate sufficient revenues to result in profitability.
While a shelf-stable product, growth will require us to tie more money up in inventory, leaving fewer funds available for operational expenses.
Product recalls can happen and may be a result of an issue down the supply chain that we couldn't account for but will still be liable. We are insured but a recall could be devastating for the business.
Disproportionate revenue among current customers. Even with comprehensive account managing, there can be no assurances that we will be able to sustain accounts which represent the highest proportion of income until new accounts are found and maintained.
7. Intense competition. Nut Butters are a rapidly growing and increasingly competitive market.
8. Speculative Nature of Investment. The ever-changing economy and state of markets generally reflect conditions in which competition, inflation, unemployment, increases in development, construction and operating costs and fluctuating interest rates may make investments in the Company more speculative than other types of investments.
9. Lack of liquidity. The time between which sales are generated and cash is received can potentially create a cash flow problem with fewer funds available for daily operations.
10. Forecasting growth can be tricky and may leave us with too much money tied up in inventory if not done accurately.