Should you risk being a young entrepreneur?
When you talk about your business, or a new business idea, some of your friends and family members might tell you that running a business comes with risks. This doesn’t automatically mean that they’re being unsupportive of you and your dreams.
Starting any new project, especially a business, comes with risks and challenges. The great news is that you can take actions to reduce the chances of certain risks hurting your business.
Here are four types of entrepreneurial risks and how you can handle them.
Lack of Money
It’s important to identify your most stable source(s) of income, especially when you start running your own business. But getting good estimates of the average amount of customers and income you will have during a typical week, month, or year isn’t easy.
Also, consider how much money you’re spending on your business. You might already know how often you will need to buy certain supplies and services.
But what happens when something breaks (such as a laptop, smartphone, or other item)? Having an emergency savings account can help you deal with different types of entrepreneurial risks. You should also create a budget for your business and find ways to reduce business costs.
Could your behavior online and in real life be an entrepreneurial risk?
Most young entrepreneurs don’t plan to break laws. However, being new to the business world means you might not know about certain business laws or regulations related to your specific industry. Also, make sure you’re following the rules set by a website or site hosting service, if you’re selling and/or promoting your product digitally.
Don’t hesitate to reach out for help with understanding any rules and laws related to how you plan to operate your business. For example, ask your parents and/or teachers for advice. Even if that person doesn’t have an answer, there’s a good chance he/she knows someone who can help you avoid legal problems.
Online Security Issues
Learning a new lifestyle hack for gaming, studying, etc.? Good. Having your website, email or social media account hacked? Bad.
More than half of cyber attack victims in 2018 were small businesses, according to Forbes magazine. Now, online hackers potentially have even more access to potential victims, especially with more people staying home due to the recent coronavirus pandemic.
Consider using services to protect your business’ website and your business’ other online-based social accounts. Talk to any tech-savvy friends and/or family members if you need help, or you aren’t sure which online security services you should use.
You probably felt great, maybe even amazing, when you started running a business. Your hard work motivated you. You looked for your first group of customers and then people began finding out about your products or services.
Then some problems showed up. You felt tired after spending hours working on a new product feature or social media campaign. A few customers told you about problems they had using your product.
You’re burned out. Maybe you’ve even thought about closing your business.
You can avoid the entrepreneurial risk of burnout by taking time to rest, relax and enjoy hobbies that aren’t related to your business. Also, reconnect with your friends (even through social media), especially if you haven’t talked to them in a while.
Final thoughts about types of entrepreneurial risks
Many young entrepreneurs face challenges when starting and growing their businesses. Four common types of entrepreneurial risks are:
- lack of money
- bad behavior
- online security issues
Knowing about these types of entrepreneurial risks can help you decide how to deal with these problems.
As an old proverb about facing risks states, “Nothing ventured, nothing gained.”