Doing business is a big gamble. It entails taking small risks every day to keep it afloat. For a new entrepreneur such as yourself, you’ll get a taste of this kind of daring, bold life just before your endeavor takes off. The following are some of the first risks you’ll have to take to make your business idea a reality.
Leaving the feeling of financial stability
Taking the plunge into entrepreneurship sometimes means saying goodbye to the steady paycheck of a 9-to-6 job. What’s more overwhelming is the fact that the first months (or even years) of doing business won’t promise returns, let alone a great yield.
You’re still picking up traction from the market, so it’s inevitable to put in personal cash to sustain your venture. Ultimately, this puts a dent on your financial stability — a stark contrast to corporate life. Consider this risk as a “baptism” in entrepreneurship. It tests your commitment to this uncertainty-laden lifestyle. It humbles you right off the bat.
But at the same time, know that there’s a way to mitigate risks in this aspect. You can choose not to leave your job completely. Consider going part-time. Treat your business as a side hustle. Once you’re able to lay down the foundations, that’s when you plan for your exit game from your corporate job.
Evaluating market appeal
Another risk you’ll take as you start your business is weighing whether or not your business will appeal to your target audience. It’s a gamble because you can never be a hundred percent sure what the outcome will be. People are simply unpredictable. Market preferences change all the time.
But there are ways to reduce risk. For one, you can organize surveys and tests. Gather a small sample of your target audience, let them try your product, and take note of their insights as you improve on it further.
Another way is to ride on an established brand that has a loyal following already — that’s through franchising. This works best, especially when you don’t have a lot of experience yet, say, when you’re just exploring how to start a coworking space or how to break into the restaurant industry.
Delegating tasks to employees
New entrepreneurs tend to be overprotective, possessive even, in that they do most of the stuff by themselves. It’s faster. It’s less prone to errors. It feeds their enthusiasm over their brainchild. However, this move is never sustainable.
You need to face the reality that you need to trust your team in delivering results and following through. That’s one of the biggest risks you’ll have to embrace. Of course, there are a lot of ways to gain confidence in this aspect.
One important key is your recruitment and employee development process. If you know that you have the best talents in town, it will be far easier to trust the team. In the case of franchise models, hiring and training programs for employees are usually part of what franchisors provide. So, you’re in a good advantage if you choose to have this kind of venture.
Entrepreneurship doesn’t thrive in playing safe. Risks start the momentum. Risks push the business forward. So ask yourself, “am I ready to embrace the risks?”