Risks Specific to Éxodo Spirits
The risk of investment is always present, due to market demand, for other products and competition resulting in supply and demand.
2. 1- Risk of Leadership Failure – Exodo Spirits businesses model has the potential of failing due to poor leadership. Our leadership must be able to make the right decisions most of the time. Not limited to financial management, to employee management, leadership failures will trickle down to every aspect of our business.
2- Risk of Lack of Planning – Exodo Spirits has the potential to fail if we lack of short-term and long-term planning. Our plan should include where our business will be in the next few months to the next few years. Meaning, we need to be aware of our suppliers’ capabilities and products challenges within the market. Not meeting the demand of the market, sales goals within dates and deadlines. Failure to plan will damage the performance of Exodo Spirits.
3- Risk of No Differentiation – As young company Exodo Spirits is aware of the concept of: It is not enough to have a great product. We also have to develop a unique value proposition, without getting lost among the competition. What sets our business apart from the competition? What makes our business unique? It is important that we understand what our competitors do better than you. If fail to differentiate, we will fail to build a successful brand.
4- Risk of Ignoring Customer Demands – Every business will say that the customer is #1, but only a small percentage acts that way. Our Businesses model will fail if Exodo Spirits fails to keep in-touch with their customers/consumers. Or if we fail to keep an eye on the trending and emerging values of our customers/consumers. As a company we have to find if the consumers still love our products, by not engaging with our brands consumers and distributors we take the risk of low sales, and lost of market share. We conduct market research across the board with all Exodo Spirits products, by questioning if the consumers/distributors without abandoning our winner products? What are they saying? Are we listening?
5- Risk of Inability to Learn from Our Own Failures – Exodo management we all know failure is usually bad, yet it is rare that businesses learn from failure.Realistically, businesses that fail, fail for multiple reasons. Often entrepreneurs like myself are oblivious about our mistakes. Learning from failures is difficult but a necessary to learn how to avoid in the future.
7. 6- Risk of Poor Management – Examples of poor management: production line, development of liquid/spirits, bad financial planning and implementations to release products to new markets. Not able to meet our financial obligations, not able to keep a consistence inventory reports, and inability to listen, micro managing – AKA lack of trust, working without standard or systems, poor communication, andlack of feedback.
8. 7- Risk of Exodo Spirits International Corp having a Lack of capital to operate/conduct daily business – It can lead to the inability to attract investors. Lack of capital is an alarming sign. It will shown the business might not be able to pay its bills, loan, and other financial commitments. Lack of capital makes itdifficult to grow the business and it may jeopardize day-to-day operations.
8- Risk of Premature Scaling – Exodo Spirits is clearly aware that scaling is a good thing if it is done at the right time. If we scale up our business prematurely, we will destroy it. Examples: hiring too many people too fast, or spend too much on marketing.
9- Risk of Lack of Profit – As a CEO for Exodo Spirits Co., I understand clearly Revenue is not the same as profit. As an entrepreneur, I must keep our eyes on profitability at all times. Profit allows for growth. According to Small Business Trends, only 40% of small businesses are profitable, 30% break even, and 30% are losing money.
11. 10- Risk of Inadequate Inventory Management – Too little inventory will hurt our sales. Too much inventory will hurt our profitability.
12. 11- Risk of Poor Financial Management – Exodo Spirits can suffer a severe financial adversity by not keeping track of all financial records and always make decisions based on the information we get from real data. Knowing where we stand financially all the time is a vital to our company success. Hiring a financial professional to explain and train our staff to understand the basics.
13. 12- Risk of Lack of Focus – Without focus Exodo will lose it the competitive edge. It is impossible to have a broad strategy on a startup budget. What makes us succeed is the ability to quickly pivot, and the lack of focus leads to the inability to make thenecessary adjustments.
13- Risk of Poor Use of Business Funds - It is possible that Xodo spends capital in ways that don't maximize benefit to the future success of the business.
15. 14- Risk of Partnership for Exodo Spirits International Corp – It’s no secret that it is easier to succeed in business with the right partners. The wrong business partner will, at the very least hurt, or, at worst, destroys the company.
Juan Carlos Hector has been working on Exodo Spirits International since 2011, but officially incorporated the business in 2012.
Juan Carlos Hector has sole authority to amend the bylaws.
Juan Carlos Hector has personally financed the entire business.