A Fabulous Affair has developed contingency plans to mitigate the risks that were described in the last section.  Competition with Splendid Feasts will be challenging.  Though Splendid Feasts has market recognition, they do not have a dynamic sales team to expand their target market and they are somewhat complacent with their market position.  They rely mostly on word of mouth advertising, whereas A Fabulous Affair has started its own aggressive sales and networking campaign.  Additionally, A Fabulous Affair will expand its sales efforts to increase the number of corporate accounts in its core business to offset the time required to enter this market and generate revenue.

To reduce the affects of seasonality, A Fabulous Affair is offering discounts to small companies with restricted budgets who book their functions during off peak times.  The revenue and publicity received from these events will keep the business lucrative and in the black.  The Company has also secured a $50,000 line of credit at the local bank at a favorable rate of interest.  This will allow the business to draw cash from reserves when needed.  In addition to establishing the credit line, the business has set aside 10% of net earnings in a non-penalty interest bearing account.  This account will be accessed only if there is an emergency cash flow problem.