Whether it's for your own benefit, or the benefit of someone trying to understand your business, maybe the single most important thing you can do in a business plan, is hit the risks head-on.
All of us entrepreneurial/founder types are optimists and risk takers to a certain degree, but that doesn't mean we ignore risk. We want to know what they are. By definition, we need to know what they are. They are what stands between us and success...a thriving enterprise or a healthy exit.
Risk is also how investments/deals are priced. The higher the risks, the higher potential returns must be offered.
You need to know what the risks are in your venture, and anyone getting involved with you needs to not only know the risks, but know that you know the risks.
Laying them all out on the table from the start demonstrates your grasp of your business, and of the private investment considerations. It's also the basis for a good working relationship. We all want to know that we are working with people of integrity who will talk candidly with us about the hard things.
