Like everything else, there are risks involved in the business world. You need to position yourself so as to be ready for any eventuality by thinking about all the possible outcomes without being too negative and without letting fear grabbing hold of you.
This is part 5 of 20 posts, so please make sure you also read the previous posts here.
21. Do Research On What Problems Similar Businesses Faced
No matter how unique your business idea is, it is highly likely that another entrepreneur in another place already tried the same business venture. You can observe the difficulties that they faced. You can also take a look at your future competitors. Observe what problems they are facing and how they are coping up. This will give you an idea on how to overcome risks, pitfalls, difficulties, and hardships related to your planned business venture.
22. Think of Possible Reasons For Your Business To Fail
This might require some wild but realistic imagination. Think of possible reasons, possible events, and possible circumstances which might cause your business to suffer or fail. If you are opening a shipping company for example, possible risks may include the following: fluctuations in gasoline prices, frequency of natural calamities in the area that might affect shipping, scarcity of competent delivery truck drivers, dishonesty amongst employees, and other similar reasons.
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23. Formulate Possible Solutions/Preventive Measures To Possible Risks
Enumerating possible difficulties that you might face is only the first step. Next, you have to think of ways of how to counter them should any of them happen.
You need to be ready for all the possible situations. This is part of the so-called ‘risk management’ which many companies invest a lot of effort into.
24. Get a Business Advisor
It might not be necessary in all cases; smaller businesses for instance may have no need of one, but for larger businesses that deal with complex markets and industries (investment/loan business, real estate business, foreign trading business, etc.), you might just need an advisor – someone who is knowledgeable in the field. This is especially necessary if there are some things in your chosen field of business that you are not very familiar with. Be ready for several advisors if necessary. In some instances, it will help to have opinions from several individuals.
25. Assume That Possible Risks Are Real
You have to progress with the mindset that your assumed risks and dangers are real. Some businesses fail at this and they begin to lax. If you do this, it is as though you are underestimating the risks involved. If you underestimate the risks, they might hit you hard when you expect it least and when you are least ready. Believe it or not, this can actually cause businesses to fail completely.