5 Risks new business owners can avoid before starting a business
Starting any business is a risk, so the more you understand the risks and balance them against the opportunity that you see, then the stronger your position.
There are no guarantees in business, and this is the first thing to understand.
Some risks are simply out of your control, and therefore, they can be tough to predict or mitigate. For example, a significant economic upheaval like Brexit if you are in the UK or perhaps a natural disaster in the US or the trade wars currently raging around the world. Events like these can occur and blindside you.
Prepare yourself to reduce 5 risks before you start a business
A smarter approach is to recognise 5 risks you can control and prepare yourself to handle them.
Unfortunately, many new entrepreneurs are not aware of these 5 risks. They, therefore, can have significant business issues unnecessarily, some of them catastrophic.
Preparation is about equipping yourself with enough knowledge, too:
- understand what you have to do as a business owner;
- whom you have to become as a business owner;
- and how to reduce the 5 risks before getting into business as much as possible.
Probably the most critical self-preparation is around your mindset. Your mindset needs to be around preparing yourself so that you can look at owning a business in a balanced and objective way.
You need to assess your ability to own a business.
Here are 5 Risks that you can work on to improve your chance of success.
1 Personal Resilience
The one characteristic that stands out about successful business owners is their resilience.
They can absorb stress, setbacks, defeats and challenges and keep bouncing back.
We suggest that you start with planning how you will build and maximise your resilience.
2 Build Your Knowledge
New entrepreneurs often lack business knowledge which they subsequently learn through trial and error. It’s a time-consuming and very costly way to learn. Some fail before they work it out. Don’t be one of them.
3 Business Owner Mindset
You need to accept and embrace the transformation from an employee into a business owner with a different mindset.
You cannot walk away from issues – you must find the solutions.
Successful business owners are self-motivators with a “never give up” attitude.
4 Your Total Commitment
Getting into business is life-changing, hopefully for the better.
Your business will make demands on you, your relationships and finances.
Understand the risk you are taking and know that you’re in 100%.
5 Your Comfort Zone Has Gone
Business life will challenge you, and new entrepreneurs are sometimes surprised how uncomfortable this can be.
Your comfort zones will get challenged frequently.
For example, you might be uncomfortable meeting people or being your sales ambassador.
Extroverts are comfortable in the sales and marketing areas. They can confidently talk to strangers at networking events or engage with people through cold calls. They deal with rejection like water off a duck’s back.
More introverted types find this very uncomfortable and often avoid these situations, which can be very stressful for some people.
Other challenges can be handling confrontation and conflict, which are almost inevitable at some point.
Procrastination can be a business killer since making decisions is a daily event, and something must feel comfortable doing.
You need to become comfortable with being uncomfortable.
All About You
You can see that these five risks have nothing to do with which business you may own as they are all about the owner.
We suggest that you consider which ones from this list you might need to improve. Do some preparation before you leap into owning a business.
Should I Own A Business Podcast
Our purpose is to reduce the enormous number of businesses that fail by enabling budding entrepreneurs to avoid the hidden causes of business failure and prepare for success.
Remember to Listen Before You Leap!
Brendan Barrow Co-Host
Should I Own A Business Podcast