Strategy Guide

Common Risks Entrepreneurs Must Consider While Launching a Startup

It is quite an exciting experience to start a new business venture and there are many opportunities to be explored. However, startup environment is full of several risks as well which you need to be aware of. At first, these risks may intimidate you and you may feel hesitant to launch your business but if you have proper knowledge, then there is less risk and it becomes easier to take the plunge.

 Risks for Startups

Risks for Startups

Let us look at some of the risks that startups face. However, if you are able to identify them at the onset and figure out how to deal with them then there are fewer chances that they will have any impact on your business.

Product Risk:

First, you need to decide the product you are going to sell. It is important to be able to tell about the thing product does and why someone will invest in it. If you do not have answers for these questions then it will be difficult to get investment. You will also have to make sure the product has a large market and it is the opportune time to launch it in the market.

 Market Risk

Market Risk:

You will have to know your customers and why they buy your competitors products, from where they buy and how they make the purchase. You will have to properly research these points and figure out whether you can do likewise with your budget and reach the market in time. These answers will decide whether you will be able to succeed in your business or not.

Financial Risks:

You will have to ensure that all business milestones as well as schedules are identified clearly and time allocated for them. It will also be necessary to define points in time when debt as well as equity investments will be required for proper functioning of the business. In case your business plan is clear and all the milestones are reached in time then it will create confidence in investors to continue investing in your firm.

 Team Risk

Team Risk:

If you are running a business, then a team will be part of it and it is necessary to select the right people who will be useful for the organization. A talented team will create new ideas and help the company grow.

Execution Risk:

You need to keep your focus and move towards accomplishment of pre-defined goals. Many times entrepreneurs get so engaged in day to day execution of activities that they lose sight of their ultimate goals.


When launching a startup, there are several controllable, while some others are not within your limits. However, you can always take the right steps to mitigate some of the risks and prevent failure.


Dr Prem Jagyasi and Team (C)

Dr Prem is an award winning strategic leader, renowned author, publisher and highly acclaimed global speaker. Aside from publishing a bevy of life improvement guides, Dr Prem runs a network of 50 niche websites that attracts millions of readers across the globe. Thus far, Dr Prem has traveled to more than 40 countries, addressed numerous international conferences and offered his expert training and consultancy services to more than 150 international organizations. He also owns and leads a web services and technology business, supervised and managed by his eminent team. Dr Prem further takes great delight in travel photography.

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