Describe The Greatest Risk For Tnc System

The greatest risk for TNC Systems is not getting a service contract in the first year of operation. This is due to its high barriers of entry and not having a track record. The other major risk is landing a contract with the government or prime contractor is a slow process. It may take two or three year before a contract is awarded.

To mitigate some of these risks, if within the first year no contract work is available, the owner may need to work part time to keep the business a float, or if the likelihood of a contract is within sight before the second year is up, the owner may need to borrow money to stay in business and aggressively work to get the contract.