Risks Specific to Grease Box
1. The primary risks an investor in Grease Box should consider are risks from competition, risks associated with market assumptions, risks associated with financing and interest rates, and risks associated with unforeseen economic instability.
2. Grease Box, like many comparable full service restaurants, may make capital expenditures in such areas as research and development, and future project development. Therefore, management of working capital, strategic planning of capital expenditures and the company's debt position are all of major importance. Various risks are associated with interest rates and financing—these risks must to be managed well to ensure profitability. Grease Box understands that the company must invest in growth while working to avoid taking on excessive debt levels, especially at high interest rate levels.
3. Grease Box has made certain assumptions about the Oakland restaurant market in order to create financial projections for the business. There is risk associated with the accuracy of these projections being compromised due to sharp changes in key assumptions such as restaurant market growth, the fast casual market, and other related variables. In order to mitigate this risk, Grease Box has taken great care to ensure the reliability and source quality of key assumptions used in the business plan.
4. The full service restaurant sector, in which Grease Box operates, is a highly competitive market. We face competition from other restaurants, some of which are well established, and have greater resources to market their foods.
5. Another unforeseeable failure is the real risk of natural disaster by earthquake. A strong earthquake could make operations impossible.