The risks every entrepreneur must take07 Jan 2016
The thrill of building something on your own from scratch and running your own business is worth the risk of entrepreneurship. If you dream of being an entrepreneur, you should be prepared for the risks and challenges that come with it. In this article, we’ll tell about some of the risks that may come your way.
- Giving up your steady job
Running a startup on the side while pursuing your full-time job usually does not work. There might not be any income initially and the success of your startup is not guaranteed, but it is required that you put in all your time and energy into building your startup.
- Personal savings
A lot of startups start their ventures with external funding, either seed funding or from friends and family. But there are also instances when you have to use your own personal savings to get your company started. You need to manage cash flow, predict demand and supply so that financial decisions can be taken properly.
- Market Predictibility
There are things about the market you cannot control like recessions and periods of high prosperity. You must take these into account plan for their eventuality.
- Trusting your employees
When you start off, you won’t have a full team of employees working for you. Instead, you’ll either have one or two people who share your passion working with you tirelessly to get things up and running. You’ll need to have absolute trust in their ability to get the job done on time.
- Personal health and work life balance
There is no work-life balance when you’re building your own business. At least initially when you are doing all in your power to get your startup off the ground. You will miss out on sleep, and you will miss out on having time to yourself and family. You have to decide if this lifestyle is right for you.
Founder and CEO of Amazon.com, Jeff Bezos’ success has been hugely due to the risks he has been taking all throughout his career. Recently, he bought The Washington Post, a struggling new operation and looks to turn it around into a revenue generating business. As successful entrepreneurs will tell you, the rewards of entrepreneurship are worth the risk. It may not always be so but whether you have the perseverance to weather these risks are a decision that you must make for yourself. Let the risk not scare you from becoming an entrepreneur. Just be aware of them so that one day when you face them, you will be better equipped to mitigate them.
Read also, how to not let these 15 reasons get in the way of becoming a entrepreneur.