Every business faces risks in today’s economy and The Spoke N’ Rider is no exception.  There are three major risks currently facing The Spoke N’ Rider that have the potential to significantly impact the business.  The first risk is competition with The Outdoor Sports Shop and The Mountain Cycler.  Although The Spoke N’ Rider believes their marketing approach is a unique one, there is still the chance that these two competitors will target the freshmen market. 

Another risk is the possibility of the expansion plans being delayed.  Due to the projected increase in the student population, the construction vendors in Mountain City have been booked with new buildings and dormitories.  Thus the chances of schedule delays are somewhat probable.  The Spoke N’ Rider plans to distribute a direct mail piece within the first few days of school to get a jump start with the impressionable students.  If the expansion is not complete, The Spoke N’ Rider will not be able to house the bikes they plan to advertise and could possibly lose business to competitors.  

One last risk is the possibility of a new parking deck being built on campus within the next school year.  This deck would significantly reduce the parking restrictions placed on the freshman population.  If the proposal for this deck is approved and built, the concept of segmenting the student market to focus on freshmen will no longer be valid.