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Element 31. Quality of The Backup Plan > Relevance—Why Add This Element?

Relevance—Why Add This Element?

Quality of the Backup Plan is a confidence builder for the entrepreneur and for the investors. Typically, when people think about an investment, they dwell on the upside. How high can this go? However, after a devastating surprise, what could be left of the investment? Could anything be saved? The key here is creating a downward sticky investment opportunity for the investor—make it so the investment will not go down too far. The upside is well understood by all. Here is the opportunity to demonstrate that the odds of losing the investment are somehow restricted, slowed, or reduced to nil. A solid backup plan will reassure the investor who is considering your idea, and now is a good time to give it some thought, right up front.

Dr. Market’s Observation:

Frankly, it is not impossible that the original direction ends up being a decoy or diversion for your competition or opponents while the real enterprise is protected from harm’s way. In other words, you might be able to protect your idea from your opponents by disguising it as your backup.



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