{"id":2644,"date":"2019-09-04T11:56:58","date_gmt":"2019-09-04T06:26:58","guid":{"rendered":"https:\/\/codelattice.com\/blog\/?p=2644"},"modified":"2021-03-03T12:19:34","modified_gmt":"2021-03-03T06:49:34","slug":"tackling-the-risks-in-a-start-up-environment","status":"publish","type":"post","link":"https:\/\/www.codelattice.com\/blog\/tackling-the-risks-in-a-start-up-environment\/","title":{"rendered":"Tackling the Risks in a Start-Up Environment"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Starting a business can be an exciting venture. The startup economy is rich with opportunity and innovation. However, it is also burdened with high \u2013 stake risks. Jumping into the deep end of the startup pool is a lot less frightening when you understand and calculate the risks. The path-dependent risks will affect the decisions you will make. The decisions you have made in the past or experienced events will limit the present decisions.<br \/>\n<\/span><\/p>\n<h3><b>Mistakes<\/b><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Going it Alone.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Ignoring Instincts.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Skimping on the Business Plan.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Handling Money Incorrectly.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Launching at the Wrong Time.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Lacking the Ability to Adapt.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Getting the Hiring Process Wrong.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Thinking Too Small.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Having Too Much Outside Influence.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Choosing the Wrong Location.<\/span><\/li>\n<\/ul>\n<h3><b>Tackling the Risks<\/b><\/h3>\n<p><strong>Product Risk<\/strong><span style=\"font-weight: 400;\"> \u2013 Make a decision about what you are selling. You need to explain what the product is, the issues it solves and why it\u2019s worth investing in. Its all about getting people to pay attention and release their investment dollars. The product needs to meet the right opportunity at the right time in a big enough market.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Do the research.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Know the environment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Convey how your business fits in the context of the environment.<\/span><\/li>\n<\/ul>\n<p><strong>Market Risk<\/strong><span style=\"font-weight: 400;\"> \u2013 Before introducing your product know your customer and why, how and where they purchase related products. The success of your business will depend on how successfully you can identify:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Identify the routes to the market.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Build them effectively.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Build them in an opportune manner.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Build them within budget.<\/span><\/li>\n<\/ul>\n<p><strong>Financial Risk<\/strong><span style=\"font-weight: 400;\"> \u2013 First-time business people have tools such as Indiegogo and Kickstarter. They help crowdfunding to get money in the bank. In addition family and friends, traditional VCs and angel investors are all sources for your assets. If you can express your growth path, business plan and reach each milestone effectively you will build confidence in your investors to write the next check.<\/span><\/p>\n<p><strong>Team Risk<\/strong><span style=\"font-weight: 400;\"> \u2013 It is important to have a confidante and a great team. You can share ideas, build a product, bring it to market and keep growing successfully with a great team. To be a successful entrepreneur you need to accept advice from others on how to reduce risks.<\/span><\/p>\n<p><strong>Execution Risk<\/strong><span style=\"font-weight: 400;\"> \u2013 You should keep the overall company policy and route in mind. Also be aware of the crucial details that result in major problems. It is important to register a balance between being the small manager and the 30,000-foot-view strategist.<\/span><\/p>\n<h3><b>Avoid Being a Statistic on the Road to Success.<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You need to be aware that:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">50% of all business fail within 5 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">25% of new businesses don\u2019t survive past year 1.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">10% of the corporations that make it past year 5 will fold in the following year.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Two founders rather than one will considerably increase your odds of success. You grow customers 3 times as fast, raise 30% more investment and be less likely to level to 0 fast.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">95% of capitalists have at least a bachelor\u2019s degree. If you remain at school you will develop discipline, knowledge connections. The odds will be in your favour.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Following the well-documented advice will ensure your startup has the best chance of success.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starting a business can be an exciting venture. The startup economy is rich with opportunity and innovation. However, it is also burdened with high \u2013 stake risks. Jumping into the deep end of the startup pool is a lot less frightening when you understand and calculate the risks. The path-dependent risks will affect the decisions [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":2649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[376],"tags":[],"class_list":["post-2644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-water-cooler"],"acf":{"heading_txt":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tackling the Risks in a Start-Up Environment - Codelattice Blog<\/title>\n<meta name=\"description\" content=\"Business can be an exciting adventure. The cost economy is full of opportunities and innovation. It also carries a high risk. 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