Appreciate the risks

Guides • Private Limited Company • 07/09/2017

Starting a company can be risky business! Remember running any company involves taking calculated risks – not an uncalculated ones!

Some example risks

Here are some of the things to consider (or brace yourself for what you’re likely to be up against!) :

Any new business (by definition) starts with a product or service, hand-crafted initially for a few select customers. Maybe they are where you got your original idea from! That said, regarless of how strong your convictions are, it is still unchartered territory. It’s something neither you, and probably no one else has ever tried before - so it may or may not work!
If your idea is good, you are likely to face a lot of stiff competition from existing market players. You will have barriers to entry to overcome, will need to cultivate a large network of contacts & relationships, and will likely face resource constraints, and many operational unknowns, if you don’t have a lot of previous experience. All this takes time, perseverance, and money!
To really make a dent in the market, you will need to protect and sustain your initial competitive advantages. This means creating a product or service that is at least 10x superior to your nearest rivals - that you can protect from the very outset! This is a really hard thing to do! Some might say, even, impossible!
If you meet with early success, you will likely have to compete with new entrants, over and above any existing rivals. This means you need to be stealthy and nimble, with an ability to adapt quickly, so you can self-improve, and stave off the competition as it comes at you,… so you can continue to grow! Again, no easy thing!