HOW TO MITIGATE FIVE RISKS TO BECOMING AN ENTREPRENEUR?

The biggest risk is not taking any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.

- Mark Zuckerberg

The ability to take risks differentiates a leader from the rest.

A business entrepreneur prepares himself to take risks that are associated with any business. Without ascertaining the depth of a river, jumping into the river is a risk for a person who does not know swimming.?

Therefore, a plan for risk mitigation is essential.?There are several risks associated with every business. However, for the laser focus, five key risks are presented here that hold the potential to create a major impact on the outcome of the various new business initiatives.

a.????Quantitative Risk: - Potential success of a startup is 10%. 90% failure of startups makes it a high-risk proposition to start a new business.?

b.???Financial Risk: Loss-making enterprise eats into the life's savings, investment, and external funding.

c.????Personal Risk: Dream getting shattered leads to trauma, stress, and agony and is likely to lead to have an impact on health.

d.???Social Risk: Fear of what others would think of the failure of the entrepreneur and dent to the pride and dignity.

e.???Emotional Risk: Impact of business failure on relationships, self-doubting belief, and feeling of rejection.???

Understanding and awareness of these risks beforehand need not be interpreted as discouragement for the prospective business enthusiast. It rather helps him to gear up well in advance with the right strategy to counter the threats to the new business.???

When you think differently to get different results, you make sure of taking the first step toward your destination.?

By now, aspiring business entrepreneurs have found their problem statement before the start of a new business. Let us focus on a solution so that the potential risk is minimized:

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a.????Quantitative Risk: Focus on 10% success stories whatever they did right by understanding and working on the root causes of 90% of failures. The top three reasons for the failure are market research was not carried out hence customer preference was unknown, selection of team members not in alignment with required skills, and lack of working capital.?

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b.???Financial Risk: Allocate the resources based on the business need aligned with the defined system and process to ensure that all financial resources are gainfully deployed. Ensure that the test and measure process is in place to know how the financial resources are deployed with effectiveness.??

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c.????Personal Risk: Get rid of self-limiting beliefs and lead the business as a role model. Follow the principle ‘under promise and over perform’. Hire good people, build the team, train them according to the business need, reward them, and engage them with the freedom to operate without your presence. This is how you remain ON BUSINESS instead of IN BUSINESS with reliance on a system-driven approach instead of dependence on individual contributors.??

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d.???Social Risk: Get fear out of your mind by developing a growth mindset as the first step of personal transformation under the guidance of a mentor. Promote yourself on social media with the right branding strategy. Be consistent on social media and share the benefits of your products and services in alignment with the perceived value of your prospects.?

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e.???Emotional Risk: A business entrepreneur keeps certain phrases such as self-doubting belief, fear of rejection, and influence of setbacks in business on relationships out of his mind and dictionary. It is said an empty mind is a devil's workshop. Engage your mind with inspiring thoughts and affirmations. Let your mind focus on 10% positive thoughts and drive away 90% negative thoughts.??

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Put your best efforts into creating a work culture conducive to inspiring the employees to accomplish their goals. Organizational efficiency and employee productivity go hand in hand. Pre-empty the risk of organizational inefficiency by focusing on developing strong employee engagement and team spirit which are the major contributors to increasing organizational efficiency.

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The adoption of challenging self-talk themes such as ‘surprise yourself every day with your own courage’ requires every inspiring business entrepreneur or an inspiring startup, to evaluate various risks including the five key risks highlighted above that are closely associated with starting a new business.

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‘I surprise myself every day with my own courage’ is my self-talk theme that resonates well with my mission ‘to help 1 lakh business owners to grow their businesses and live a life of abundance’.

Summary

Success in business without taking a risk is an illusion. Risk is a part and parcel of every business. If you are an aspirant business startup and looking forward to realizing your dream, you have two options. Either be prepared to take risks and enjoy the grand memorable moment of your life with your new identity as a business entrepreneur or give up your dream if you lack the courage to take risks associated with every business. It is an established fact that at the beginning?of your entrepreneurial journey, you may be surprised?by?the emotional challenges?a business entrepreneur face.?Ask yourself if you are prepared to face?these entrepreneurial sensitivities in your dream journey ahead. If so, be prepared to mitigate the five risks discussed here.

About the Author??

Suresh Shetye is a certified Business Coach with over four decades of experience in business HR and business coaching and business consulting. He is a partner of ActionCOACH Global, USA, the number one brand in business coaching in the world with a presence in 97 countries. He is committed to assisting business owners and start-ups to build and grow their businesses. He drives personal transformation beginning with business entrepreneur followed by the team through one-to-one coaching as well as group coaching. He has helped several business owners and startups to build their businesses, including those who were stuck in businesses with his mentoring, coaching, and extending support for effective hand-holding.

Suresh can be reached for one-to-one business coaching and group business coaching, business transformation programs, keynote speaking assignment, offline customized workshops as well as soft skill training including leadership excellence and development (LED) programs.

Looking for a solution to your business pain areas, please write to?

Suresh for a complimentary?diagnostic session:

Email to: [email protected]?

Visit: www.boomstride.com?