Time Merchants Critical Risks Internal Risks External Risks Quality of Service Downturn in the economy would reduce the demand for our service Responsiveness of Partners/Providers Barriers to entry Insufficient capital investment People may not want to have their groceries delivered to their home Insufficient sales Copy cat companies Transportation and distribution are key to the success of the operation Lack interest by suppliers If we cannot effectively distribute the products and services in the most efficient manner possible we will not be profitable Risk of theft or accident by delivery drivers Table 4 - Critical Risks Risk Reduction Strategies: Time Merchants views the following risks as posing the greatest threat to the overall success of the venture and plans to address them in the following ways:

• Not meeting sales and growth projections
  • Utilize highly trained sales people to market our services
  • Extensive marketing campaign
• Copy Cat Companies or a Downturn in the economy
  • Establish long- term relationships with both customers and suppliers/partners
  • Maintain fair prices for superior service
  • Maintain effective marketing campaign
• Customer acceptance
  • Effective marketing campaign
  • Provide references from satisfied customers
  • Provide quality and timely service
• Supplier/provider responsiveness
  • Creating an environment of cooperation and developing a vision of mutual benefit will enhance relationship between the partner and TM.
  • A complete and extensive evaluation of participating partners to determine quality and responsiveness will be completed prior to TM selecting a supplier
  • Follow up with customers will be completed to ensure quality service
  • Providers not meeting the standards set by TM will be dropped
• The internal risk of theft or accident by delivery drivers
  • All drivers will be licensed and bonded
  • Provide extensive training in customer service and customer relations
  • Performance of background checks on all employees

Insurance Provisions

• Provisions for insurance have been made and verified by G.S. Levine Insurance in San Diego, California.
• Time Merchants plans to obtain the following coverage (all of these will be in place at the start of business)

  $1,000,000 General liability	$1,000,000 Auto
  $100,000 Theft	$5,000,000 Umbrella
  $20,000 Property	1,000,000 Employee benefits

  Table 5 - Insurance Provisions