5 Risks to Consider When Starting Your Business

1/7/2021

5 Risks to Consider When Starting Your Business | James Kassouf | Leadership

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by James Kassouf | Dec 28, 2020 | Entrepreneurship, James Kassouf, Leadership, Small Business

Businesses are economic ventures undertaken by entrepreneurs to make profits. When identified early in business life, some risks can reduce expenses and even propel the business to success. Discussed below are some of the risks to ponder on when starting a business. Product risk – When a business starts, the main idea is to draw people’s attention to the product. For people to be interested, the product must make their lives easier and solve a problem in one way or another. To reduce product risk, the entrepreneur must clearly explain the product, how to use it, and the solution it promises to offer to the customers. Market risk – Any product’s target market must be assessed before a product launches into the market. Conducting market analysis to know the competitors when it comes to related products is important. Once there is a clear mapping, a channel can be built using available https://jameskassouf.co/5-risks-to-consider-when-starting-your-business/

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1/7/2021

5 Risks to Consider When Starting Your Business | James Kassouf | Leadership

resources to get a competitive advantage. A market risk that promises a positive outcome to the entrepreneur is a key indicator that the business could succeed. Financial risk – In these times, it is possible for new start-ups to source crowd-funding through channels such as Kickstarter. Additionally, investors and families can also invest in the business. Identifying key business milestones and points where more investments are required to attain greater success is crucial. It will motivate the investors to give more as there’s a track record of milestones achieved due to investment. Team risk – It is crucial to have a great team to push the company’s agenda and attain its goals. A team serves several roles, such as brainstorming on building a product, business solutions and acting as a source of ideas for other products. Involving people who have confidence in your goals gives the product the best chance of success. In addition to that, believing in them will help propel the company to success. Execution risk – This risk is characterized by companies losing focus on their goals and ignoring minor issues while focusing only on the larger problems. An approach that involves having both minute details and major problems assessed is critical for business success. When this is employed, it gives the best chances of success for the business.

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