What is your assessment of the potential risks associated with this project?
Health Nuts face a variety of risk factors that need to be accounted for in our business model. One such risk factor pertains to the withdrawal of grants. Losing grant money, which is a major revenue source for the non-profit, will significantly impact our financial viability. Understanding alternative revenue models will be critical to success. One way we have already accounted for this pertains to the revenue sharing structure that has been adopted. This makes sure that the school has a financial stake in our business so that they are more inclined to ensure the sustainability of our non-profit.
Furthermore, as a result of COVID, there is a serious risk of schools being moved online for an extended period of time. This uncertainty makes it critical for us to be able to adapt our business model to an online platform. Currently, we are assuming that schools will return to be operated in a per-COVID environment. That being said, it will be important for us to adapt virtual learning components into our business model if online school is still a reality when our non-profit is launched.
Another pertinent risk our non-profit faces is the potential that nutrition education could be received from a more convenient platform. For example, on a federal and/or state level, governments could start mandating integrative nutrition education in health classes. This would create a more competitive environment for our non-profit to run in. Ensuring that we can enhance our value proposition so that our non-profit remains viable under changing environmental circumstances will be critical. One such way we are already doing this is by ensuring that the nutrition program is focused on creating affordable, easy to make, healthy meals for all students.
What steps can you take to avoid, mitigate, or compensate for these possible risks?
In order to mitigate these risks, it is critical that we develop a safety net of funding in case a grant or major funding source is withdrawn. Ensuring that back-up funds are available until another funding source is obtained will be essential for financial sustainability. This will be especially important as both the economic and political environments change. Government funding is always shifting so, understanding alternative revenue sources, especially private funding sources, will be essential. As we grow, applying for more grants (both public and private) will be a key to business longevity.
Another important step to take to compensate for risk, in terms of the ever-changing education environment, will be to make our content more accessible and unique. It is important for our non-profit to start small so that we can understand what works well and what needs to be modified. This iterative process will need to be conducted in an in-person environment. That being said, as we continue to grow, ensuring that we create a dynamic business model that can become more accessible, potentially on online platforms, will be critical to ensuring our non-profit sustainability. This effort has the goal of providing students access to our content in non-traditional academic settings. One potential untapped market includes providing integrative, hands-on nutrition education to students whose predominant education experience occurs in a digital environment.
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