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Risky Business

Is your business ready to deal with the unexpected?

This story appears in the November 2008 issue of Entrepreneur. Subscribe »

New York City-based Plum Organics was two weeks away from a production run of its organic kids' meals when the phone rang. On the other line was the company's organic cheese supplier.

"They said, 'We're out of organic parmesan cheese because there's a shortage of organic ,'" recalls Plum Organics' founder, Gigi Lee Chang. The supplier said it expected a shipment of organic milk to arrive soon and that it could probably meet 3-year-old Plum Organics' production deadline. Chang was skeptical. She called another supplier, but because its organic parmesan wasn't fully aged, Chang, 41, feared it would change the taste of the product.

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