The risks of Entrepreneurship
Updated: 6 days ago
What is the definition of an entrepreneur?
This term has two meanings: first, it is the person's quality who identifies the opportunity and organizes the resources necessary to obtain it. Second, a nonconformist attitude or aptitude allows a person to bet on new projects to achieve greater achievements than he has achieved.
It sounds good, but why is it so difficult to undertake? Tons of web pages explain why being an entrepreneur is so difficult. We have tried to gather here several risks you will face if you decide to start a new business and some of the ideas you can apply to alleviate it.
1) The risk of not having money
Whether you have a job or are unemployed, investing in a company without a clear future does not seem like a great option. You will probably have to put in money from your pocket, and if you decide to dedicate yourself completely to entrepreneurship, you must be prepared to deal with a lack of money initially.
You can get external financing, but you must work hard to make your product or service appear profitable to consumers. Consequently, the idea of being an entrepreneur and throwing yourself into the business vacuum does not seem as attractive as it initially seemed.
2) You are not very focused on technical and legal issues
To become an entrepreneur and self-employed, you must understand the procedures, tools, business models. It is a time-consuming task, but it is necessary to be able to advance in your company.
3) You don't know if the public will like your product/service
At the beginning of your project, you probably don't know if what you offer to your future clients is the right thing to do, if it will attract them. Ultimately, whether you succeed or fail depends on them, on your customers. To do this, you need to know who your product or service is aimed at your target audience. It is useless to launch yourself into the market if you do not know that there will be many people who are going to be interested in you and will give you enough economic base to grow as a company.
4) You lack support, and you don't know who to turn to
If you are thinking of being an entrepreneur, you may feel that they do not support you, either because they do not trust your product or service or because they do not trust that you can carry out your project. In those cases, you will need a lot of patience and courage to overcome. In general, people tend to associate the product with the attitude of the entrepreneur who sells it.
First, you must be fully convinced that you want to sell that product or service; only later can you convince others. If you want moral support, you need your family and friends to trust you and be with you.
SWOT analysis helps identify risks
SWOT analysis is an important tool, which can help you identify the risks of your business. The acronym joins the initials of four words in English: strengths (strengths), weaknesses (weaknesses), opportunities (opportunities), and threats (threats).
The concept was created at Stanford University at the end of the 1960s, SWOT analysis is widely used in the business scenario. Even in a simple way, it allows the reading and analysis of the most diverse management situations. When it comes to risk analysis, you should focus primarily on weaknesses and threats.
These two points help, among other factors, to develop different actions and strategies to minimize negative effects, whether they are internal or external. It also helps identify disadvantages of your company about competitors. It can contribute, if necessary, a repositioning of the brand in the context of the market and front of your target audience.
Once you become aware of what you can lose and what you are willing to give up, you can move forward. Now, the decision is yours.