Entrepreneurism – The Odds Improve the More You Know.
Failure. A topic that nags at the thoughts entrepreneurs have about their product, service, solution as they attempt to go-to-market with the ideas they feel will impact business. The “F” word is just that, a word, used to describe the aftermath of some series of events that have occurred. But, investing time and effort into early avoidance measures, the attempts at risk mitigation, can improve the odds of building a successful business entity.
Depending upon who you ask, risk is a very broad subject. It has many meanings. Each is has potential negative impact on you efforts at making your business grow, and to achieve sustainability.
Legal Risks - If you ask a lawyer, there will be an assessment of the legal implications that can impact your business. This extends to risks associated with intellectual property, copyrights, branding, and the compliance with regulations per whatever industry you are engaged in. Liability concerns arise for some products and services so be advised to consider the potential harm your solution could generate.
Financial Risks - If you ask your banker or investor sources, they will advise you on financial risks. Not saving sufficient capital to develop, and operate your business through the stages of bringing the concept to market, are the most obvious ones facing entrepreneurs. Once things are moving forward, if your cash outlays exceed your ability to recoup the expenditures, you will see other risks impacting the ability to be self-sustaining. Typically, for those who have ideas that need manufacturing, the up-front costs are a serious negative hole to dig out of early on in the life of the product or service. Being prepared for the financial risks means solid planning is required.
Market Risks - Market risks fall in to several concern areas requiring you do your due diligence, preparation, research, and planning. If the product or service you are going to produce will be able to find the appropriate market. How much time and effort is required to connect with potential buyers in that market is of concern? Who are your competitors and how is your product or service differentiated from all of the others? And, just for good measure, is your product or service something that the general economic conditions have an impact upon?
Personal Risks - Not to be a purveyor of doom and gloom, you also need to take in to consideration the impact of your business on your health, your family, friends, and do you have the necessary grit and determination to work around the possible obstacles that may befall your venture. You may be betting your home equity, or the college or retirement funds, on the success of your venture. Plan accordingly to shield your personal financial situation as much as possible from the “F” word.
So, the bottom line we preach consistently is: Prepare, develop, act. The failure to do those activities, contributes to the “F” situation. Do not let that happen to your venture.
Check out the list of interest points in our local area for more information on helping you to mitigate the risks inherent in your new business venture.
Local Points of Interest to Raleigh area entrepreneurs
http://www.meetup.com/RaleighEntrepreneur/ (local Raleigh Meetups for Entrepreneurs)
http://entrepreneurship.waketech.edu/ (Wake Technical Community College, Center for Entrepreneurship, a great resource)
http://www.hubraleigh.com/ (HubRaleigh, offers a new type of environment suited to entrepreneurs)
http://www.raleighnc.gov/home/news/content/CorNews/Articles/HUBRal.html (link to article about HubRaleigh)
http://eoaccess.eonetwork.org/raleighdurham/Pages/default.aspx (a global network for entrepreneurs building contacts, Raleigh Chapter)
https://www.facebook.com/RaleighEntrepreneursOrganization (local group connecting with entrepreneurs in Raleigh)
http://www.linkedin.com/groups/Raleigh-Entrepreneurs-Organization-3418804 (Linkedin connection point for Raleigh entrepreneurs)