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Setting off on your own can be a daunting process. Keep these five risks in mind
Nothing can provide more excitement and uncertainty than starting a business. Creating something of your own, to build and be nurtured, is a great opportunity to find success and personal satisfaction. There are many aspects to consider while embarking on the startup journey.
Time, money, and support are all important to think about when getting a business off the ground. Anticipating the risks before jumping in is frequently a missed step. No one starts a business hoping to fail so by analysing the risk factors you will provide yourself with a plan to ensure long-term success and profitability.
Here are some insights on risks to consider before starting your own business.
Bye, bye paycheck
Starting a business is a full-time job. It is important you are putting all your efforts in and this can only be done if you are solely focused on the business. Of course it is scary to not have a secure income coming in monthly and it is also something to think about in regards to your responsibilities and expenditures. In the first few months, and even years in some cases, businesses do not make money, and therefore you will need to ensure you have savings to survive on, as well as moral support from those close to you while you are starting out.
Remember, with risk comes great reward so sometimes sacrifices have to be made if you want to succeed in the long run.
Think it through
Before getting too excited about your business idea, it is important to do some market research on existing goods and services that are already in the market similar to yours. If you are entering into an already saturated market, think how you can differentiate in order to be competitive or how you can market your business idea to a completely different need.
Before investing your time, money and energy, ensure you are taking the right steps to properly understand the market and customers, rather than trying to push something that is obsolete or of no value to your ideal consumer.
Having enough capital to run a business separates those that are from ones that don’t last. Your idea could be groundbreaking but without the money to get the business running, you will find it very difficult to bring your dream to fruition. Luckily nowadays there are a lot of crowdfunding opportunities, such as Kickstarter, which can assist you in raising investment. Don’t be afraid to go out there and ask for what you need financially. You don’t want money, or lack thereof, to get in the way of your dream.
Choose your team wisely
Starting out solo is all well and good but eventually you will need to trust in others so you can expand your business with growing consumer demand. Find team members that you trust as they can make or break the progress of your business. Recruiting can be a lengthy process, especially if you are just starting out and are not able to provide salary expectations of the industry. You will need to rely on your team to be able to deliver without your constant supervision so take the time to find the right people who fit in with your company expectations and watch your business flourish.
Being too ambitious
Of course ambition is important and is probably one of the traits that lead you to start your own business in the first place. It is essential, however, to stay realistic with your business plan and goals in order to ensure you are taking the time you need and meeting important milestones for future success. Cutting corners or trying to expand before your business is truly ready can leave you in undesirable circumstances.
Slow and steady wins the race so take your time and do it right the first time, rather than having to go back and do damage control.
The writer is an architect and interior designer, and founder of Design Haus Medy