Most entrepreneurs are risk takers by nature. They sometimes face losing everything they invested in a startup business. When taking a risk in your life or your business, there are two chances.
- Either you will achieve what you envision
- Or you will learn a lesson.
Both ways, the risk is worth taking.
For entrepreneurs, taking risks and business growth go hand in hand. Entrepreneurs take risks on a regular basis, no matter how big or small they may be. One thing about entrepreneurs is that they have no space for regret or remorse. They don’t want to grow old and regret not taking that chance. This is what drives them to do all that they can in one life. And even if they end up failing, they will have a lesson learned, they will have practical experience and the ability to tackle similar situations easily in the future.
When choosing this career path you leave most of the things that people enjoy every day. The following are the unavoidable risks that every entrepreneur faces (Benefits included).
Risks and benifits of an entrepreneur :
1. Security of a fixed monthly salary.
Risk: You will lose your financial security which every employed person have and you can not have a fixed pay and this may shake away the fragile minded average person but an entrepreneur faces this risk for the benefits he can reap in the future.
Benefit: There may not be security but freedom here to take your own decisions is unlimited, you can have a sense of control over your life as you won’t be working in a 9 to 5 job and you have freedom of choice, another important thing here is the potential to earn as an entrepreneur is unlimited whereas it is fixed or limited in a job.
2. Extra time to spend with your family.
Risk: There is loads of work yet to be done always and you have to be doing delegating or managing so many tasks, and because of this you may not spend enough time with your family and friends because you are doing the work you love and are willing to work 16+ hours.
Benefit: You can put aside everything and spend as much time as you want with your loved ones and get back to work, you just have to make sure that you delegate the work to someone who can at least do the task 80% efficiently as you can so that you can enjoy some of your free time.
3. Sacrificing personal capital.
Risk: You definitely have to put in some initial capital no matter how small it is from your hard earned money, and that might be all that is left on your name but you must be willing to take that risk at least to just get started or to get the things going, and you might lose everything in one go.
Benefit: The business might need some initial capital which can be your personal money Yes!! but the benefits can be awesome, if you can make it, you can find investors or you can even find partners who can work with you so that you can see a spike in your sales chart, but if you couldn’t take
4. Facing unfortunate events as a result of failed attempts.
Risk: No matter how cautious you are there are events which are inevitable in life, you should embrace them and always be ready to tackle them, You may try something different and it may not work.
5. Depleted bank accounts foreclosed homes and credit card debt.
Risk: You must accept the fact that you are not going to make money right at the beginning of your journey, so being broke with little or no bank balance should be accepted. You might have heard stories of some of the greatest entrepreneurs saying about their downtimes such as Steve Jobs, Elon Musk, Dhirubhai Ambani and Colonel Sanders but in the end, they made it with consistent effort and commitment.
Benefit: The benefit is obvious you will have financial freedom and an empire built by you, and your name is said as an example to others.
6. Wagering on a critical deadlines.
Risk: Startups are, by nature, forced into strict timelines for your product launches and milestone goals. Your finances are fragile, and your investors are eager to start seeing the wheels turning. As a result, most entrepreneurs are forced to make multiple goals contingent on a handful of deadlines, and those deadlines become absolutely critical. Be prepared to stay up at night worrying about your ability to hit those deadlines, and coming up with contingencies if you cannot.
Benefit: All this comes under training to become a better entrepreneur than you were before, you will learn how to handle projects, improve your productivity and also improve your credibility if you can reach those targets.
7. Marriage, Relationship Disturbances & Breakups.
Risk: There is constant instability between your work and life, balancing those two is a really good skill and most entrepreneurs fail in this aspect even the most successful entrepreneurs face broken relationships if they don’t have an understanding partner who clearly understands about their career and personality.
Benefit: There is no major benefit in breaking up with your partner, the only thing you could be doing as a precaution to avoid this is to explain your partner about your career or you could spend more quality time with them prioritizing your relationships.
8. Building a brand with no established credibility.
Risk: Building a business with zero reputation, with no contacts, and without an established brand is hard, and your potential customers/clients may not trust you so easily, and it definitely takes a lot of time to establish yourself as a credible brand in your industry
Benefit: Once you have established yourself as a brand you can exponentially grow your business and your client base can easily grow.
9. Failing to innovate or keep up with the needs of your target market.
Risk: Being innovative can be a really challenging job especially with a market that changes constantly, in a place where competition is raising its standards every day you need to be a leader who sets those standards, not being able to innovate will wash you out of the business when something disruptive comes in to the market.
Benefit: Being an innovator can be really tough but it may create
10. Bad hiring & partnership decisions.
Risk: People are complicated and one bad partnership can cost you both time and money and the same is with bad hires, but choosing a bad business partner is even worse because you may ultimately lose your business.
Benefit: Taking some backstabs and knowing the real face of people around you when they deceive you will make you a stronger person and you will have a better understanding from the next time as you have your past experience with people.
11.Pressure to maintain a steady flow of customers.
Risk: If you are not a good salesperson you are going to have a rough time in business because sales are the only way where you can get in cash flow in any organization. There will be a constant steady to maintain that steady cash flow for the survival of the business. That could only be done by the number of paying customers you get or have.
Benefit: Learning to maintain a steady flow of customers always depends on your sales skills and that can only be improved with regular training and practice, as an entrepreneur you are the salesperson of your business and starting a business will put you in situations where you must perform to survive so you will definitely improve your skills in the end.
12. Day-to-day challenges and decisions.
Risk: As an entrepreneur, you are completely responsible for every decision you make about your company, it will decide your future and also the lives of your employees, as so many lives depend on you .. Every decision you make is crucial and operating a business with such high-stress levels will make a person mentally crippled at least for some time until you gain motivation or training either from outside or from
Benefit: You develop a work ethic and you become a fast decision maker who understands making mistakes is a part of learning new things and as an entrepreneur, you will make mistakes often you have the opportunity to grow always.
13.Remain Wary Of Disruptions
Risk: A competitor or a major loss and disruption can come from anywhere and you need to be very very calculated or you will lose everything in one shot.
Benefit: This will be the part where you can learn about strategic thinking and crisis management in a hard way but it is worth it in the long run.
14. Cyber security risks
Risk: One of the most common entrepreneurship risks, especially in today’s world is cybersecurity risks. Everyone knows the drastic effect it would have on your company if your confidential information leaks out. No one without proper authority should be able to access important and confidential employee and company data or even cash.
Benefit: There can be no benefit with cyber thefts, as a 21st-century business owner you need to be cautious about them and take precautionary measures.
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