All entrepreneurs function in a climate of near-constant, unavoidable risk. Here’s how to successfully use risk to bring your business up in the world.
All entrepreneurs function in a climate of near-constant, unavoidable risk. Here’s how to successfully use risk to bring your business up in the world.
What is life without risk? Thomas Jefferson once said, “With risk comes great reward.”Well, I’d say this: with calculated risk comes great reward.
As an entrepreneur, risk is inevitable. You can’t just ignore the fact that you are exposed to various risks, specially legal and financial ones; yet without taking any, why would you want to be an entrepreneur at all?
From the moment you make the decision to start your own thing and forget being a “corporate slave,” you must acknowledge that you are embarking upon a path full of surprises. Here are a few of the inherent risks:
Forget that steady monthly salary and annual bonus. Yes, dear; if you have decided to quit your job and build your own business, then you will have to get used to some tough times until your new business picks up. The situation also depends upon the backup plans you have in place. You may have saved a good amount of money to support yourself during this period. In any case, you should be adequately prepared to face the rough stretch ahead of you.
“From the moment you make the decision to start your own thing and forget being a ‘corporate slave,’ you must acknowledge that you are embarking upon a path full of surprises.
Cash flow: Obtaining and securing an ongoing cash flow with which to run your business will be difficult. You’ll require funds to cover your bases and ensure that your business runs smoothly. If you are not making enough money to cover your costs, you could end up eating into your emergency fund (if any), or start borrowing from other entities. Be careful about your direction, review your operations carefully, and remain efficient in how you run your business. This is why some people might actually start their own businesses while still employed, but even then,it’s never easy!
Will your business be successful? That is the ultimate question! No matter how much research you perform or how many market tests you do, you couldconsistently end up failing with your product, for some reason. People are unpredictable; market situations change quickly, and they are dynamic. Your numbers might tell you something, but by the time you launch your product, oh boy! Make sure you dig deep into the market and understand the full picture of exactly what you are getting into.
The “I don’t have time” issue: Are you ready to let go of your personal time (and sometimes your health)in order to run your own business? Here’s the thing. Being your own boss is nice, but it will come at a price. Running a business solo in the beginning means doing almost everything yourself:securingan online presence, stayingconnected, answering customers, and so on. Unless you have others to support you and systems in place to handle some of the tasks, you will need to be engaged heavily in your operations until your business settles down.
“The ‘I don’t have time’ issue: Are you ready to let go of your personal time (and sometimes your health)in order to run your own business?
The failed dude: In many cases, entrepreneurswho fail at starting a businesscansubsequently be labeled as “failures.” This doesn’t mean you should stop the journey and quit what you are passionate about. Step back for a moment, assess the situation after the failure,pick yourself up, and continue on your journey, learning from what made you fail in order to become a better entrepreneur.
All of this isn’t meant to scare you. When you reach a certain point in your business, you feel the happiness and the greatness of your efforts. The rewards of entrepreneurship far outweigh the risks. Don’t give up on your journey. Have faith, and trust yourself and your abilities. Just keep your eyes open, and prepare for the road ahead.
