How do you handle the risks of entrepreneurship?

One of the core ideologies I come across during my journey of entrepreneurship that we need to set a price for the journey we are about to make while starting any new startup. If the price is realistic & well defined before launching the startup then it nevers fail. Here price means every hurdle or barrier or resources coming during the journey of a project life cycle.

Handling the risks of entrepreneurship, especially when you've experienced multiple failures, can be challenging. However, it's important to remember that failure is an integral part of the entrepreneurial journey. In my experience, there are 3 important questions to consider (I´m sure there´re many more :)): a) Stay updated on industry trends, emerging technologies, and market. b) FOCUS: you have limited time and resources. If you try many projects simultaneously...you´ll fail. c) Stay adaptable, and keep learning from your experiences to increase your chances of success and remember keep open minded and collaborative.

Entrepreneurship is a thrilling journey of highs and lows, shaped by vision and grit. Yet, inherent risks challenge every entrepreneur's path. Navigating these demands a blend of strategic planning, continuous learning, and adaptability. While risk can't be eliminated, it can be managed. Diversifying revenue streams, continuously updating market research, seeking mentors, and building a financial safety net are critical. Embracing failure as a teacher rather than an end can be the game-changer. In the dance of entrepreneurship, it's not about avoiding the fall, but mastering the recovery.

Indeed, entrepreneurship is an exciting venture for the people with patience. The times are right to start a new venture in the context of favorable government policies and finance options globally but what is crucial here is your ability to cope with pressures and uncertainties. Your risk appetite is greatly a function of financial stability of your family, alternate sources of influx so that the regular needs and affairs of the family are not compromised with. Therefore taking the plunge in your late thirties to late forties is something I will not advise until and unless you have created a good fortune to support your family's welfare, needs, events and dreams. Experiment, if you are in the Infra or ultra-risk zone.

In 2013,I embarked on a transformative journey by establishing my first tech company, leaving behind my life in the USA and going to Rwanda. I learned a crucial lesson: focus on one project and manage risks effectively. Avoid the temptation to chase every opportunity. Discern opportunities that align with your mission and evaluate their risks. This skill is vital for success. My journey emphasizes the importance of focus, strategic decisions, and robust risk management. I share this to help fellow entrepreneurs pursue a targeted approach, increasing their chances of success.

This seems like an old fashioned approach these days. Sure, write business plans, but make them iterative and not for 5 years. Research the market and learn more about the known knowns, but also consider all other knowledge variations. Rarely does innovation come from a room full of innovators or the innovation department. Worry more about your own brilliance, determination and differentiators than trying to beat your competitors. Plan for projects, deliver against promises and explain problems early, if they arise. But be flexible and welcome surprises and possibilities to pivot where you can. Opportunity comes in many different forms at different times, and serendipity is a good companion to preparedness and hard work…

I really feel getting early feedback from diverse perspectives is key. Talk about your idea with potential customers, partners, investors, candidates. Each audience has a different viewpoint which will really help you flesh out your idea. Also it helps hone your pitch - if you can explain the idea in less than a minute to a family member, you have your pitch down!

At my core, I sincerely believe that one must go slow to go fast and take the time to plan. Thorough research is critical to all and any forward momentum. When I teach at Sustainable Supply Chain at UCLA, I make sure that my students understand the meaning and value of benchmarking - knowing the marketplace, seeing how few companies control massive marketplaces and conducting thorough research on their commitments to actionable goals, their willingness to be transparent, their measurement of progress or lack thereof, their public disclosure of warts and all and finally their engagement with critical stakeholders including dialoguing with those charging them with stakes. Seek true experts, identify sources/references and reap the rewards.

Thoroughly research the market and create a detailed business plan to understand your audience, competition, and financial projections. Risk is inherent in entrepreneurship, but with careful planning and a proactive approach, you can navigate challenges successfully.

If you want to do something innovative then you can't just copy your competitor's strategies because you will get into the pricing game if you are just a copycat of your competitor. So offer your audience something unique & and innovative, Solve their real challenges to motivate them to buy your product, and build your brand in their mind.

Diversity of income is a great career strategy whether you’re an entrepreneur or an employee. It’s like diversifying investments so that if one stream struggles then another one can step into the gap. Google portfolio careers for more on this!

In jumping into self-employment, diversification through a back-up plan is a smart move. Having an emergency fund is good general financial planning and you need one in entrepreneurship too. And you also need to set a limit- like when I’ve gambled in Las Vegas, I set a maximum budget to lose and have the discipline to stop when I hit the number and move on.

Unfortunately our system of education teaches maths, science, art etc but doesn’t teach one how to prepare for & succeed in the journey of life. Success is a journey not a destination and just as much as your car comes with a spare wheel, every one should have a Plan B & a smart Plan B should be one that has the ability to become your Plan A. When COVID hit, many who took a stand against the mandatory vaccination were told “No Jab No Job” & many are still paying the price. It’s times like these that having a Plan B can be a very wise step.

The only real diversity you need is the contribution of as many different angles you can find. #DEI is not only the key to getting your solution created but more so in getting it accepted.

For newcomers, this is very time sensitive and one has to be very careful as an organic approach is recommended in the initial stage of their business operations… small qualified steps must be observed here

Implementing a good tracking system and investing early in accounting support is key! It is way more expensive to clean up a big mess than to hire someone to help you create a solid foundation for managing your money. Depending on the experience of the entrepreneur, this may be obvious, but first and foremost - separate your personal money from your business/seed money if you are investing personal funds into your endeavor. Tracking systems can be as simple as a spreadsheet or accounting software. Pick a system from the start and stick with it until you outgrow it. Knowing what you are bringing in and how much you are spending can help you make better business decisions as you plan for the future!

Managing Finances is the key part to keep alive your Business, As money is the oxygen for every Business and we need to maintain our cash flow to keep running and adapting path to save cost at early stage of Business.

Managing your finances as an entrepreneur is akin to navigating a ship through uncharted waters. Like a wise captain, I've learned that diversifying income streams is crucial, much like hoisting multiple sails for stability. Moreover, adopting frugality not only fortifies your financial vessel but also fosters resourcefulness. As an entrepreneur, understanding the distinction between necessary expenditures and mere splurges is paramount. Lastly, always keep a vigilant eye on the financial horizon, for prudent planning today can prevent shipwrecks tomorrow

Ah, this I recognize… first it is hard to put a price on what you have and who you are. Then it’s a surprise that customers see your uniqueness and you grow rapidly… to be followed by: OMG we have more mouths to feed so we need to do sales. 😀

Managing your finances both personal and business is Finance 101 to be able to run a business. Be ready to sacrifice your personal lifestyle for at least 36 months to keep your business afloat. And post that be ready to not live the lifestyle you always for wanted for another year or 2. Doing this gives your the life you always wanted :)

Don't ever shy away from asking for help. When people see that you are passionate about your project/business they will want to help you.

Find other people that have started their own business and learn from them! I am very blessed to have great people in my circle that answered all of my crazy questions when I was starting out. Also find yourself a fantastic attorney and tax accountant to help you along the way!

Franchising can be a way for entrepreneurs who want to tap on the network and know how and be part of the franchise community. Knowing which franchise to choose is important. Look at their ranking in various categories, speak with current franchisees to understand better which areas the franchise is weak in and whether their strengths complement you.

Our @ESTI mindsets are true to this day: #4 feedback is a gift, also constructive criticism. People take the time to allow you to improve. 👏

Starting your own business is tough and can feel lonely. Don't go it alone! Find mentors, friends in business, or advisors who can help you out. They can give you advice, cheer you on, and help you see things differently. Learning from others who've been there can save you from making mistakes, help you tackle problems, and even open new doors for your business. Plus, it's always good to have someone to talk to when things get tricky.

Failure, often overshadowed by success, is an invaluable teacher. Unlike success, which reinforces what we know, failure compels us to adapt and learn. It pushes us beyond comfort zones, fostering creativity and resilience. This shift from certainty to flexibility fuels personal growth. Equally, failure underscores the need for core skills. Amid success, skills abound, yet mastering one, even through failure, acts as a safety net. This competence becomes a foundation, ensuring stability when other paths falter. In essence, failure is a unique teacher. While success draws applause, failure fosters introspection. It unveils decision-making flaws, accentuates areas for improvement, and encourages continuous learning.

If you are afraid of failure, or want to limit your chances of failure, there are business models such as a franchise that can help you limit that risk. Good franchise businesses have already engineered the processes needed to be successful.

To get to it, you have to go through it. Pain is inevitable, suffering is optional. Most great public speakers and leaders will tell you about that devastating moment, disaster, illness and or trauma that brought them to their knees and from that, like a phoenix from the ashes, they rose up and succeeded and or healed. In fact, many TED talks start this way. In a world destined for inevitable and devastating change, as so many of us in the sustainability space have been predicting since the 60s and 70s, we had better figure out how to be resilient, fast. It is no longer a prediction, it is unfolding every day, Our past, present and future are colliding. We can learn from the natural world as it has been adapting for 40 million years.

When do you call it quits? You'll need to be highly disciplined to accomplish this. Unfortunately, most people lack the mental fortitude to make decisions. Most people have a problem with emotionally investing in their businesses—your desire to be “right” and make money becomes inextricably linked. Your willingness to be “right” becomes more important than your desire to make a profit. It’s game over.

Do what you love doing and are passionate about. Your chances of success are far greater if you deeply care about the product or service you are offering, as opposed to it just being about making money. One question worth asking: If this enterprise was a nonprofit, would I still do it?

An entrepreneur is someone who creates a product to sell and takes on all the risks and responsibility of doing so. There are a lot of risks and rewards involved with entrepreneurship, and they are all greatly considered by an entrepreneur when deciding to start a business around their idea or product. Most important thing I learned from the experience are; - Ensure business is a force for good. - Learn what you do best. - Be open to new opportunities. - Test your assumptions. - Use data to connect the dots. - Promote human-machine collaboration.

To handle entrepreneurship risks, shift focus from potential losses to gains. Consider the drawbacks of not pursuing your venture, like missing personal growth and financial independence. Remember, the worst-case scenario often involves returning to your previous situation. Focus on potential rewards, including personal satisfaction and autonomy. Plan strategically, balancing optimism with practicality. View challenges as learning opportunities, build a support network, and maintain financial prudence. Be adaptable and align your venture with personal goals and values, turning risks into growth opportunities.

I love these contributors comments, especially about doing what you love and also using “failure” as an opportunity. Being a pioneer or an entrepreneur or brave enough to go beyond involves taking risks and believing in your offering. And you won’t always get it right. One thing I’d add is, not to be afraid to challenge and sense check your ideas and motivations. It’s easy to get lulled into a sense of security amongst friends and like-minded colleagues. The other thing I’d add (that I’ve definitely learned along the way) is to never compromise on your values but remember there are myriad ways to reach a goal - many you will not have thought of - and finding common ground with others will be rewarding. Sometimes surprisingly so!

Always be flexible, know what you don't know, and don't be afraid to pivot. It's also amazing how much you learn from the challenges and mistakes.