As with any business that provides services for children, one of iPianoLab’s primary risks is the potential for lawsuits around child-endangerment, neglect, and improper care.
Unpredictable after-school programming and policy changes at both the school and community education levels could have unexpected adverse effects on iPianoLab’s business. Possible policy changes that could negatively impact iPianoLab’s ability to do business in schools include prohibiting outside vendors, development of in-house programs, limiting ability to market programming directly to students, and increasing facilities fees and revenue-sharing arrangements to a prohibitive level.
Risks to cash-flow efficiency can appear when management allows for too many programs offered on 60-day invoicing, which cause iPianoLab to float payroll expenses before realizing revenue from some school districts and community ed departments. Risks can also arise from delays in payment from these departments.
Finding qualified and able part-time educators and staff to meet demand can limit iPianoLab’s ability to grow quickly, especially in new markets.
Because iPianoLab’s keyboard labs are portable, and because our primary end-users are young children, equipment theft, damage, and depreciation through normal wear and tear are a source of potential unexpected expense.
With a large portion of iPianoLab’s revenue coming from online activities, the stability and reliability of our technology infrastructure is of vast importance. Risks include network outages, programming errors that cause unexpected downtime, and security breaches of the online system.