RISKS EVERY ENTREPRENEUR HAS TO TAKE

AGENDA

• Entrepreneurs & Risks

• Risks Entrepreneurs have to take

- Giving a huge amount of your personal time

- Ditching your steady paycheck or income

- Forgoing your personal capital

- Relying on cash flow

- Trusting a key employee

- Betting on a crucial deadline

- Estimating popular interest

• Conclusion

• Starting a new business or implementing a novel idea

is as good as gambling

• Not every entrepreneur is going to make it big at the

very first shot

• Risks are a part of any entrepreneur’s journey

• Risk taking spirit is needed or else a business can die

out even before taking off

• Business owners should be able to judge when to

apply risks to different aspects & stages of business

• One should evaluate potential benefits of taking a risk

ENTREPRENEURS & RISKS

Let’s take a look at some risks that every entrepreneur should take

through different stages of his or her entrepreneurial path

• Entrepreneurship can take a toll even on average

person

• Countless hours have to be sacrificed to make

your company a successful one

• The remainder of the time will be spent on

worrying about the business

• It can also affect your health, you can lose out on

hours of sleep

• Personal time can be almost nonexistent

GIVING A HUGE AMOUNT OF YOUR

PERSONAL TIME

• Before starting on your own, one may have to give

up their current job

• An entrepreneur may have to even forgo their

career

• Forget guarantee of a fixed monthly personal

income

• The first few months or years may be extremely

unstable

• May also be difficult to sustain an alternative

source of income due to lack of time

DITCHING YOUR STEADY PAYCHECK

OR INCOME

• Many entrepreneurs usually get their funding

thorough a collection of external funding sources

• Some entrepreneurs start their ventures relying

solely on their personal funding

• They dive into their own bank accounts & personal

savings to get things started

• Usually some personal amount would have to be

put in which could mean forsaking or least

shrinking your safety net

FORGOING YOUR PERSONAL CAPITAL

• Bills in businesses can pile up in no time

• If revenue is not enough to support outgoing cash flow, one could run

short of money for paychecks & other transactions

• Using emergency funds may then be necessary

• Securing a regular cash flow can be difficult & stressful

• Business can be positioned at a profit but struggle with the daily

necessities if your revenue doesn’t match or exceed your costs in a timely

manner can be common.

• One should address this daily or at least weekly to avoid pile ups

RELYING ON CASH FLOW

• When you start a business, you will probably not have a full team of

employees working for you.

• Instead, you will be having a small trustworthy group of people working

tirelessly together in an effort to get things up and running.

• You will have to put an overwhelming amount of trust in them, especially

if their skills are hard to find and they are willing to start work at a lower

salary than the industry standard.

TRUSTING A KEY EMPLOYEE

• Startups are by nature are bound into strict timelines for their product

launches and milestone goals.

• Finances are fragile, and their investors are eager to start seeing the business

running and aiming to profit.

• As a result, most entrepreneurs are forced to make multiple goals contingent

on a handful of deadlines, and they become completely critical.

• So be prepared to stay up at night worrying about your ability to hit

deadlines and coming up with contingencies if you cannot.

BETTING ON A CRUCIAL DEADLINE

• One can conduct endless amounts of research on business idea

• It is difficult to estimate popular interest in your business with perfect

accuracy

• People are somewhat volatile, which could in turn put a giant hole in your

otherwise sound plans

• If your projections are off your entire financial model could implode

ESTIMATING POPULAR INTEREST

• Rewards of entrepreneurship often outweigh personal risks

• However one has to be prepared to live a ‘Risky’ type of lifestyle

• Risks should not steer one away from pursuing entrepreneurship

• Risks should be seen as necessary obstacles on a greater path

• Avoiding risks are difficult & may be even impossible in entrepreneurship

• By recognizing risks, one can prepare for & mitigate them

CONCLUSION

Images are for representation purposes only