What are the risk of being an Entrepreneur?
A risk- taker is one who is not afraid to go out, deviate and be different. With the current economic crisis that blatantly stares at us, many entrepreneurs are at the “playing- safe” mode, meaning it is difficult and uncalled for right now to take risks in any undertaking. Of course, who would not want to be successful without having to take the risk of failure? In any undertaking, there is always a 50/50 chance. The 50 percent can be for the success of the endeavor and obviously, 50 percent for the failure. Admittedly, the latter is feared the most by thriving entrepreneurs.
The first risk that an entrepreneur faces is the market risk. You should know your market thoroughly and discover their need and desires. You should even anticipate their every move. In this way you can position your promotional strategies and advertising to attract their needs and weaknesses. Some entrepreneurs are afraid to take the risk in bringing out and introducing a new product. An entrepreneur with great entrepreneur skillsapply the latest and the best entrepreneur strategies that can stir-up the market and avoid the risks of being disliked and rejected.
The second risk is the credibility risk. If there is a new and outstanding product from the Body Shop, for sure, many people will buy because of the name of the company that sells it. Credibility is an important factor in any business undertaking. Thriving entrepreneurs have to keep in mind though that being new is not at all a threat. If only best entrepreneur strategies are used with a combination of entrepreneur skills, then nothing will go wrong with the business. The driving motivation to succeed and excel is also very important. However, it is a given fact that not all entrepreneurs have the best entrepreneur strategies and excellent entrepreneur skills. You do not have to be totally perfect! Most entrepreneur stories will tell you that the most successful business persons did not go to formal training schools in entrepreneurship. Learning comes from the act of doing.
The third risk is the investor risk. Putting up a company requires a great amount of capital. Liquidity and a vast pool of resources is very important to the success of the business. The entrepreneur should be smart enough with some tinge of gut-feel in knowing and choosing the right and most reliable investors to boost financial backing and maintain liquidity.
The fourth risk is taking a consultant and an expert in the field. Although they are already experts and masters, most entrepreneurs still consider it as a risk. Their in-laid plans may not work and you have already paid them in full! In seeking expert advice, an entrepreneur with terrific entrepreneur skills can determine the soundness of the advice.