5 Risks the Entrepreneur Faces
Most people in business are trying to reduce the risks factors inherent in startups and entrepreneurial ventures. One of the biggest attributes of the entrepreneur is their ability to take a risk head on. But, how can you prepare if you don’t know what to watch out for?
If you’re just starting out, there are several risks you should be prepared to see.
Are you an innovator? Did you come up with something that no one has? That’s great! But, what if you just came up with a better way to do something? You need to be aware of the competition. If you know what other companies are doing similar things, you can see what factors were a struggle for them. At the same time, be aware that they’re checking you out, too. Make sure you are clear about what makes you better/different.
This is a big one, but we’ve been talking about finances on this blog for awhile, so if you aren’t aware of the risks, check out some of our other posts. To sum up, know how much money you need, know how much you’re asking for, and know how much you expect to get. Don’t forget to work up a business plan that you can present to investors and interested parties.
3. Entrance Strategy
One of the quickest ways to kill a business is if you enter the market incorrectly. This includes pricing and demand. Do people need your good or service? Are you doing things in a timely fashion? Have you priced your offer fairly and competitively? Do your market research and you will land on your feet from the beginning.
Are you pitching the next great Google Glass app? Well, that’s great. But, who’s going to use it? When evaluating risk, don’t forget to factor in rapidly changing technology. The founders of a service like Square saw a trend in technology that wasn’t going away. While it’s hard to predict the course of the next great technology, don’t ignore what trends of current technology have led to.
How many people do you need to function? Like the financial category, you should be aware of your minimum, your target, and your maximum. This will also help you when you’re hiring. An entrepreneur needs to be a jack of all trades. Do you also expect that of your employees? Find out how many people you need to run your business and what kind of people they need to be so you know what you’re looking for.
What other risks do entrepreneurs have to take? Tell us in the comments!
Posted on June 17, 2013, in Biz Tips, Entrepreneur, Small Business, Technology and tagged competition, competitive risk, entrance risk, entrance strategy, entrepreneurial risks, finances, financial risk, operational risk, operations, risk, taking risks, technology, technology risks. Bookmark the permalink. Leave a comment.