There is often "talk" about taking risks in your business. "It takes money to make money". " “Most great people have attained their greatest success just one step beyond their greatest failure.” ... and we could go on. There are many quotes about what it takes to run a business successfully, and many talk about risk and failure. What exactly does it mean to take a risk?
Have you left a full time, steady job to start your own company? Doing that is a risk in and of itself and often, requires a substantial amount of money. Your steady income is no more and you have to hustle in order to be able to have income coming in the door. What if there are no clients that week? Will you still get paid?
On top of that, there are risks involved with hiring employees and just running the business in general. What if your customer base is low? What if you do not have any customers? What if your overhead suddenly goes up and your business does not? Entrepreneurship overall involves a great deal of risk, and you need to be ready to take these risks on before deciding to go into business.
According to Leonard C Green, entrepreneur mentor and educator, "Entrepreneurs are not risk takers, they are CALCULATED risk takers." These individuals do not just gamble everything into their business, but rather find ways to reduce risk as their business moves forward.
So what kinds of risks are there?
1. COMPETITIVE RISK
Competitive risk refers to the risk of a business owner for losses due to the product, price, and marketing strategy of competitors in the market.
This type of risk is higher for startups since they usually face much competition with companies that have established their presence in the marketplace. How saturated is your market? Are their many others doing what you do for less?
2. CREDIBILITY RISK
This refers to the risk that is faced when a new product is introduced. The credibility of the brand will influence the purchasers decision. If the brand is new many will choose one that is more established and that has a good reputation over something they know nothing about.
50 percent of purchasers bought the product from a brand they were familiar with, and 21 percent report they bought a new product because it was from a brand they like.
There are many other risks associated with opening your own business, or running a company. Many entrepreneurs have failed and/or lost everything and started over. It is the true entrepreneur spirit that keeps many going forward. Just know there are risks involved with everything in life, and as a business owner, if you are ready to accept them, then you are ready to go forward!
And, there is no risk involved with getting new headshots or business portraits! So, why not update yours today?