5 Business Risks Entrepreneurs Must Take To Achieve Growth
The prospect of making your own decisions and being in charge of your own destiny is worth it. But if you’re going to be successful as an entrepreneur, being a woman also, you have to be prepared for the risks and challenges that come with it.
Risk-taking is almost the same with entrepreneurship. To start and support your own business as a woman, you’ll have to put your career, personal finances, relationship and even your mental health at stake.
Below are some risks every entrepreneur cannot avoid.
1. Sacrificing personal capital.
Some entrepreneurs are able to start their businesses relying solely on external funding. That usually means a collection of angel investor contributions, government grants and loans, and results from funding campaigns. But many entrepreneurs also have to dive into their own bank accounts and personal savings to get things started.
Though this may come as not too beautiful an idea or process, you will have to get used to it if you want your business to get a footing quickly.
2. Abandoning the steady paycheck.
Before you venture into the world of business ownership, you’ll first have to say goodbye to your current job (especially if it is so tasking), and in some cases, your career. Some people have the advantage of a backup plan, an option to resume your career in case things don’t go well in your new business but some do not. Either way, this is just one of the risks you have to take to grow your business.
3. Sacrificing personal time (and health).
Entrepreneurship takes its toll on the average person. You’ll spend countless hours doing work to make your business successful, and your remaining hours worrying about what you have or have not done thus far. You will lose sleep, you will miss out on personal time, and you will experience much more stress than you are used to.
The rewards of entrepreneurship often outweigh these personal risks, but you have to be prepared for this type of lifestyle.
4. Deciding what your customers want
No matter how much research you do or how many tests you complete, you’ll never be able to estimate popular interest in your business with perfect accuracy. You can never predict people which could put a giant hole in your otherwise soundproof plans.
Even when it all appears to be in your favor, there’s a chance you’re overestimating the interest in your business, and if your thoughts are off, your entire financial plan could scatter.
5. Trusting a key employee.
When you first start a business, you won’t have a full team of employees working for you. Instead, you’ll probably have a small, tight-knit group of people working tirelessly together in an effort to get things up and running. You’ll have to put an overwhelming amount of trust in them, especially if they have special skills that are hard to find and are willing to start work at a lower salary than the set standard.