Every business faces risks in today's economy and A Fabulous Affair is no exception.  There are three areas that could potentially have some impact on the business.  The first is competition with Splendid Feast.  A Fabulous Affair’s objective is to enter several niches including a market in which they have not faced much competition - the entertainment industry.  It will be difficult since they have a history in the market and have established relationships with their clients.  The second area that requires attention are the months that generate less income than the holiday season and the summer festivities which in turn might impact the last area of concern - the company's cash flow reserves.  This is a situation that is faced at some time or another by all businesses.  A Fabulous Affair has taken this into account and has adjusted for seasonal sales variations thereby basing its sales forecasts for the start-up year and future years on conservative estimations of this seasonal effect.