Every business faces risks in today's economy and A Fabulous Affair is no exception.  There are three areas that are especially risky.  The first is competition with Splendid Feast.  A Fabulous Affair’s objective is to enter a market that is dominated by Splendid Feast.  It will be difficult to gain market share because of Splendid Feast’s history in the market and established relationships with their clients.  The second area that represents a risk is sales seasonality.  The Company generates the bulk of its revenues in the holiday season and in the summer months.  This seasonality will affect A Fabulous Affair’s cash flow reserves.  The Company has taken this into account based on past experiences and has adjusted for seasonal sales variations, thereby basing its sales forecasts for the expansion year and future years on conservative estimations of this seasonal effect.