What Entrepreneur Risks to Avoid
Becoming an entrepreneur and completely understanding the entrepreneur risks is not black and white. Before getting into the risks associated with being an entrepreneur a brief historical perspective of what it means to be an entrepreneur is needed.
A country’s economy has many things that will determine it’s economic well-being. There are too many factors to be listed here, but one of the main contributing factors is entrepreneurship! Traditionally, entrepreneurial ability tended to be defined by the following four attributes:
- Initiative- The entrepreneur takes the initiative to bring together all the resources required for the business venture. Land, labour and capital to turn the idea into production and turn the idea into a viable business opportunity.
- Decision-making – This is how the course of the business enterprise is set. The entrepreneur makes all the decisions to create a basic business policy.
- Innovation – This is how the entrepreneur introduces new products and/or ways of doing things to the market.
- Risk-taker – This is self-explanatory. The entrepreneur risks his or her time, effort, business reputation and funds on the entrepreneurial venture.
There are many types of entrepreneurs, All of which face different challenges and risks.
The Modern Entrepreneur
Until recently, the attributes listed above, especially risk-taking and innovation restricted many people from becoming entrepreneurs. Today, however, with corporate down-sizing becoming a fact of life, many entrepreneurs find themselves thrust into the role out of necessity.
The question now becomes do “Do I have the right stuff to make it as an entrepreneur?”
Some people are born with it, no question. However, that are countless successful entrepreneurs who learned the skills they needed to be successful in their business opportunity. Engineered Lifestyles was established to help new and experienced entrepreneurs alike grow their businesses globally. Contact Us directly to get more information on how we can help you overcome to the following entrepreneur risks.
The Common Entrepreneur Risks
Regardless of the type of entrepreneur that you are aspiring to be, or the industry that you will be in, there are three common entrepreneur risks to overcome are – planning, finance and implementation.
All entrepreneurs face the challenge of starting a new business, be it through innovation, finding the right business opportunity or buying a franchise. Regardless of the road that is taken, planning must be done correctly. There is an old saying that states “He who fails to plan, plans to fail.”
With the varied ways of becoming an entrepreneur that exist, the amount of money required varies greatly also. It can be as little as a few thousand dollars to hundreds of thousands of dollars. For instance, if you are bringing a brand new product to market you will need finances for product development, production costs, marketing and distribution. Unless you have the funds for these operations, you will require a business plan in place, prepare funding proposals, applications for loans, and even get outside investors to raise the capital you need to launch your business.
With two major hurdles overcome, it is in this stage that it makes it or breaks it! Many believe that the hardpoint is getting started, which it can be, but most businesses stumble in the implementation stage. There are many theories for this, but the simplest is that the person that develops the idea, is usually a different breed of person to that who has the skills to implement the business.
The skills required to launch a business can be overwhelming. As a responsible entrepreneur, you need to be honest with yourself to understand your strengths and weaknesses. This self-evaluation will then allow you to understand what you have at your fingertips and what you will need to get. Whether that be business partners, sub-contractors, employees, etc. Go out and get the skills that you need.
Easier said than done at times, especially if you are on a “shoe-string” budget right? There are always alternatives though. There are resources all around you to help you get what you need. You are on a site right now that was built for just that purpose!
Engineered Lifestyles was born from an individual who wanted to become an entrepreneur but had no business training, but had the desire. Through this desire and the assembly of an amazing team of mentors and coaches, Engineered Lifestyles helps thousands of entrepreneurs, new and old, get their business off the ground.
Contact us today so that we can see how we can help you.