Being your own boss is the best thing. You don’t have to explain yourself for little things, you can do whatever you want without someone judging you or with a person sitting right on your head. As appealing as this sounds, this also brings a lot of hurdles that one needs to cross before going this way. To set up a startup business, one needs to take care of all the circumstances around him, and take careful baby steps in the beginning, and continue to take the careful pace throughout the company’s life.
Stats show that almost 90% of startups fall off without even the company taking off in the real world, sometimes really early, like in the very first week or month. Startups are often risky platforms, as there are as many as risks as there are the advantages that one might get.
Here are the most common, yet important risks that one needs to find solutions before setting up a startup business in any sector:
1. Analyzing the saturation of the market:
There are thousands of startups in the same market as you are in, and chances are, how much ever unique your idea could be, there are already people working on the same idea. and if there’s no one with the same idea or USP, there are pretty high chances of people stealing these ideas.
To gain success in a particular market with a lot of competition in, one needs to find ideas that will appeal to the consumers in a way that hasn’t been done before.
2. Picking the right staff:
To maintain consistent success at the initial stages, the right set of people should be working on the company that is mature and reliable enough to make any kinds of decisions, small or big. The right employees should believe in the cause of the company, and hold it together through the tough times. The staff should be capable of pitching all kinds of new ideas and should be able to maintain harmony within the company. With the right team and proper teamwork, a company can reach heights within no time.
3. Being clear about the company’s finances:
Startups definitely need a lot of money in the initial stages. To meet these ends financially, the entrepreneurs must be clear and sorted about where their money is coming from, when their debts are due and where to take these debts. In today’s world, if a company cant sustains financially, the company is deep in losses soon enough before the founders even realize.
4. Keeping up with the changing market environment:
The most important risk that a startup company can face is the constant changes in the market environment. The companies should always be open to these changes and accept them, and change the aims and plans thereafter, by making the right choices whenever needed. The only possible way to reduce this risk is to keep upgrading the company on a regular basis by keeping pace with the changing environment.
5. Staying updated with the technology:
Technology keeps changing every day. Ten years ago, people had cellular phones that only purposed calls and messages. Today, cellular phones have grown to smartphones that are capable of connecting people from anywhere in the world. In a startup business, it is very important to grow as the technology upgrades and make full use of the developments digitally. Otherwise, the competitors in the market, who take complete advantage of the technology will pace with double speed and carry the whole success with them.
6. Finding the right location for the company:
A work from home company or a hands-on office, an entrepreneur must be very keen about selecting their work location. If the right location isn’t chosen, the risk of losing the business in a few days is quite real. The company should be close to the market, where the customers can notice and start projects with the startup.
7. Sticking to the original plan:
Many entrepreneurs usually go off the track during high hours of hard work, which results in nothing but losing the main goal of the company, its aims, and motivation. The employees should always be in their consciousness and keep a track on the company’s journey, and make sure it is going in the right way. This risk might sometimes make the company lose its actual purpose in the market.
8. Being safe legally:
Startups constantly run under the risks of loss and legal liabilities that sometimes might lead to serious consequences. The legal risks are sometimes impossible to control when they aren’t been taken care of in the initial stages. Without a professional lawyer to rely on for legal advises, it is tough for a startup to sustain in today’s world of strict laws.
9. Marketing with creativity:
During the initial stages of establishing a startup, entrepreneurs find it really hard to communicate to the audience in a way that appeals them to like the company and turns to it for their needs. This risk often leads to bad consequences because, without the right marketing, a product cannot be brought into the eyes of the consumer in the market, especially with much competition. Hence, to achieve success right on the initial stages, the companies should find ways to advertise themselves in a way that people will remember.
10. Choosing the right strategy:
Today’s market constantly runs with new strategies and schemes. With the risk of the company’s initial strategies being ruled out and outdated easily, the entrepreneurs should be very careful and updated with the changing market, and come up with new strategies constantly to take the company further in the given market.
11. Knowing if the market is ready for the company:
All startups got to be terribly targeted on assessing however the market reacts to their launch. whereas they will have done heaps of pre-work in addressing the risks known as entering the pre-launch section, it’s still attainable that the market or customers react otherwise from what they’d expected and modeled their business plans on. to present some examples, the distinction in market response is also in terms of inadequate acceptance of recent product/service/solution, or the response to cost points of the startup. within the event of that occurring, the largest talent of a startup lies in being nimble. Adapting to the market reality, and adaptation lightness and speed of response in implementing various arrange B or C confirm however doubtless they’re to beat the freshman blues.
12. Targeting the right audience:
Through thorough market research, it isn’t hard to find the right audience for the company, given there’s a vast set of audience in every sector of business. The entrepreneurs need to find their niche and try to attract them towards the startup. Even though the company’s way to bring out something is already laid out, the needs and tastes of the general public keep changing. So, the entrepreneurs need to take these risks into serious consideration and target the right audience in order to achieve success.
To summarise, startups aren’t always an easy path, there are a lot of other risks that haven’t been mentioned too. But with the right aim and brains, any startup can grow to unbelievable heights.