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Chapter 10. Managing Risk and Uncertaint... > How Do Entrepreneurs Convince Stakeh... - Pg. 193

C HAPTER 10 · M ANAGING R ISK AND U NCERTAINTY 193 assumptions, scenario analysis allows you to avoid reliance on the inaccurate simplification of point estimates. Moreover, accurate decision making is facilitated by the identifi- cation of the key assumptions that drive results. By examining sce- narios, you can see what variables change the most in response to changes in key assumptions and which factors vary with changes in other factors. This information will help you to make plans that min- imize the likelihood that adverse outcomes will happen and maximize the likelihood that beneficial results will occur. One further point is worth making about scenario and options analyses. Successful entrepreneurs know that these tools are comple- ments rather than substitutes. Therefore, they often use them together to make decisions about new ventures. When information is not completely known about alternatives, options analysis helps to make decisions about different alternatives over time, and scenario