Although Minnie (from above) has learned a lot, her first business plan had some problems. Below are some statements that were found in her plan. Indicate if the statement is a problem or not and, if it is a problem, which of the six risks does it fit.

1. My competition is the two other bakeries in the area and several grocery stores that sell pre-made cakes.
2. According to my cash flow projections, I should have enough cash on hand to cover at least three week’s expenses.
3. According to my income projections, the firm should reach breakeven within six months.
4. There are 100,000 people in my marketing area and every one of them has a birthday. If my profit is only $1 per cake, I should make $100,000 in my first year.
5. There is no other business in the area making and selling custom-designed cakes.
6. My assets are $50,000. My liabilities are $40,000 and I have $20,000 in equity.
7. This buisness plan is for a bakery