Common Risks Entrepreneurs Face in 2020

 In Blog, Starting a business, Tips for entrepreneurs

Entrepreneurship Risks to Keep an Eye on When Starting Out

The word “entrepreneurship” brings this idea of glitz and glam, but is often associated with the word “risk.”

Yes, there will always be risks when you enter any activity. A study by Statistic Brain shows that over half of all businesses tend not to make it past five years in the US, and more than 70% fail after ten years. Those are alarming numbers, but that should not discourage you from entering the world of entrepreneurship.

Although it may be a scary journey, becoming an entrepreneur can be very rewarding. One way to hold the reins of your business is to understand the risks that you are likely to face during your endeavor. Here are some of the most common risks entrepreneurs are facing in 2020.

Hands holding piggy bankUnsteady Income

Once a business is stable, a steady paycheck is a certainty. However, your business will likely face ups and downs during its first months up to a year. It’s not a reason to give up. Just something that is naturally part of the process. You can prepare by keeping a cash reserve that you can fall back on in case you need an extra hand, while your business starts to develop and take shape.

Being Run Over by the Competition

When starting a business, understanding who you’re up against is critical. Otherwise, your competition could come in and steal the show without you realizing it. Take time to analyze your industry and understand your competition carefully. Run a SWOT analysis to get a better picture of the things you need to work on and the ones that will help you thrive. Also, never get too comfortable. Be on the lookout for new ways to make your offering more attractive.

Cybersecurity Threats

Cybersecurity must be a priority for all businesses in today’s world. Confidential information is a company’s most precious assets, and ensuring their safety is critical. Digital work platforms make everyday tasks more accessible, but they also make your data more vulnerable. Identifying your cybersecurity risks and implementing measures —cybersecurity training, two-factor authentication methods, VPNs, firewalls— to keep your information safe is something you cannot take for granted.

 

Having a good business partner like AAI on your side will also help you navigate through rough waters, so you can get to the other side safely, ready to thrive.

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