Managing Risks: What Factors Affect Your Start-Ups

Venturing into start-ups comes with several risks. There is never a guarantee for the start-up’s success. People create start-ups with only one aim: to be successful in the future. Some succeed, but others still fall to failure because of certain factors. Check out these 5 factors that can affect your Start-Ups.

Your Idea’s Significance

In creating a start-up, considering the product or service is vital.  It should be beneficial to the current culture of the society. Check if your idea is too old for use to some or too advanced that only a certain few can truly appreciate its value. Take the time to research on currently in-demand products or services. Doing so cuts the risk of creating a start-up with only a few customers. It also helps in saving you from falling into a market with many competitors.

The Overwhelming Pressure           

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“As to the shallow self-reflections bit, entrepreneurs are constantly managing an unrelenting stream of pernicious and hypercritical judgments from others.” says Dr. Paul Hokemeyer, PhD, an internationally renowned clinical and consulting psychotherapist. Managing start-ups is a daunting task.  Always expect sacrifices, several deadlines and the risk of failing immediately. Pressure arises whether you create it as a single founder or with a team. It may influence your mental health because you will face huge decisions from time to time. Those decisions may often leave you asking whether it was the best decision or not. Your execution of work and adaptability to the demand of society is always tested. The overwhelming pressure can also lower your self-esteem or give you anxiety. You can handle this by managing your time and remaining confident.

The Financial Risks

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Dr Andrew Powell, MD founder of The Abundance Circle said, “unless you come from a family that has generational wealth, then you have been programmed with a bunch of limiting money beliefs. People who come from money have been programed to control resources whereas people from the working class have been programed to be resources.” It is best that you use your own money for the start-up but, this doesn’t always lead to success. You risk the chance of losing a lot of money in creating your start-up. Your start-up should not only be something you expect to produce a lot of money from. Work with something that you love so that you lessen the feeling of regret if ever the business doesn’t work out. Also, think of it as an initial investment to your future success. 

Your First 100 Days

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The first 100 days of your business is very crucial. This phase is where you need to do several tasks. From filling out the necessary legal documents to the production of funding. You can expect to invest so much time watching over this. There is a chance you lose precious time with your loved ones. It may affect your relationship with your significant other. Also, it will test how you manage yourself and your team. Never lose sight of the important responsibilities you have. You risk losing time with the most important people of your life but always make sure to be there for them in the end. After all, should your business fail they’ll be the first to comfort you?

Depression From Failure

“There are traumatic events all the way along the line,” says psychiatrist and former entrepreneur Dr. Michael A. Freeman, MD.“You can get into a startup mode, where you push yourself and abuse your body.” You should always perceive failure as a lesson for success. There are times that too much failure can lead to depression or a lowered self-esteem. You can never expect the success of your start-up from the start. Feedback is an essential part of the growth of your start-up. It can also help with your personal development. Never lose the courage to keep trying, after all, we succeed at our own paces.

Managing these factors does not entirely mean your start-up will succeed. In the end, start-ups are huge risks that often lead to the biggest success or failures. It all matters on how you manage your time, resources, and yourself in the process.

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