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The risks related to our business are both internal and external.

6.1 Financial Risks

Our quarterly revenues and operating results are difficult to predict and may fluctuate significantly from quarter to quarter as a result of a variety of factors, including:

6.2 Legislative / Legal landscape

6.3 Operational Risks

To attract and retain users to the SanaSana community, we need to continue to provide unique and informative content. We will need to purchase or license a portion of this content from third parties. Competition for content from people with the professional reputation, name recognition and expertise that we require is intense and increasing. This competition may increase the fees charged by high quality content providers, resulting in increased expenses for us.

6.3.1 Content generation /Acquisition
We will not only have to expend significant funds to obtain and improve our content, but we must also properly anticipate and respond to consumer preferences for this content. If we are unable to enter into agreements for the delivery of desirable content, or lose any existing agreements, it could delay market acceptance of the SanaSana network. Other risk include:

6.3.2 Content delivery
Any systems problems in the SanaSana network, such as system disruptions, slower system response times, and degradation in customer service levels, could result in negative publicity, cause our users to use our competitors' services and reduce our revenues. Additionally, if we fail to meet the web site performance standards in our contracts with our institutional clients, they may terminate their agreements, require refunds or fail to renew contracts with us, any of which could decrease our institutional revenues.

6.4 Brand Building & Awareness

A failure to build our brand names quickly and significantly will result in lower than expected revenues. If we do not gain significant brand recognition quickly, we may lose the opportunity to build a critical mass of customers and our business may fail. To increase brand recognition, we will need to increase substantially our sales and marketing efforts, our third party alliances, and our content, product and service offerings, all of which are expensive.

We receive sponsorship revenues from advertisers of health-related products on our web sites and revenues from sales of health-related products. However, our success in attracting and retaining users to our web sites depends on our being a trusted source of independent health-related information. There are several risks inherent in brand building; we believe the following to be most relevant:

Endnotes 1 U.S. Department of Commerce, "Population Projection of the United States by Age, Sex, Race and Hispanic Origin: 1995-2050". February 1996. 2 United States Center for Disease Control and Prevention, 1997. 3 Cyber Dialog, "Healthcare Industry in Transition". 1999. 4 Selig Center for Economic Growth, University of Georgia, "Hispanic Buying Power by Place of Residence". 1999. 5 E. Miller, M.D., Interview, Dean and CEO, Johns Hopkins. Medicine 6 Cyber Dialog, "Healthcare Industry in Transition". 1999. 7 Ernesto Levy, Interview, Brand Manager - Fit Brand, Procter & Gamble Co. 8 Based on capture rate of all Internet consumers using drkoop.com Inc. 9 The Boston Consulting Group states that the price to retain an existing online customer to be $7. 10 U.S. Department of Commerce. "Falling Through the Net: Defining the Digital Divide". July, 1999. 11 U.S. Department of Commerce. "Falling Through the Net: Defining the Digital Divide". July, 1999. 12 US Department of Commerce, "Population Projections of the United States by Age, Sex, Race and Hispanic Origin: 1995-2050, February 1996. 13 US Department of Commerce. "Falling Through the Net: Defining the Digital Divide". July, 1999
Table of ContentsAppendices
0. Executive Summary
1. Business Description
2. Market Analysis
3. Management Team
4. Operating Strategies
5. Financial Projections
6. Business Risks
Health Demographics
Future Business Offerings
Competitive Landscape
Internet Usage and Penetration
Technical Infrastructure Implementation
Detailed Financial Statements
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