10 Risks Every Entrepreneur Must Take to Succeed In 2023
As an entrepreneur, risks are the things you should have to face frequently. Risks are not strange things, they are common to all humans. Undoubtedly, we face many risks in our daily life but when it comes to the entrepreneurship, there are different kinds of risks to becoming successful. Also, you know that the world’s billionaires and other successful entrepreneurs have faced many risks in their successful journey if you have read their life stories because they know that the greater the risk, the greater the consequences.
Risk is a challenge that you do not know what the outcome will be. It can be a huge achievement that will turn your life upside down. Also, it could be the biggest defeat in life that fall your life to zero. But for those who want to succeed, risks are essential because no one was successful without struggle. However, the great thing is risks will reduce your fear of failure. But bear in mind, failure is the best lesson in life to level up and grow again.
1. Risk of leaving the comfort zone
The first risk that entrepreneurs should take is to leave their comfort zone. A comfort zone defines as a psychological state that feels free and familiar with things. There are no risks and no stress. 90% of people are in this comfort zone even they know that it is not the place for success. A person in a comfort zone can’t make his own new decision because he is always in his limited environment. So we can describe the comfort zone as a cemetery where new ideas are buried. Below you can see how the comfort zone is and where you are.
2. Risk of failure
Failure is not the opposite of success; it is part of success. But most people accept it as if everything has failed. There is no one become a success without fail. It is not the habit of an entrepreneur to regret and give up in the event of a defeat. Many suffer from failure because they haven’t any idea about the next step. If you are afraid of failure, it means you are running away from success. But every entrepreneur loves to take risks of failures.
Increasing the number of failures will speed up your success because failure is a great teacher. It’s the only way to learn so you have to fail. Micheal Jordan, the greatest basketball player in the world, once said;
I have missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that’s why I succeed.Click here to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Mickeal Jordan
One of the best entrepreneur Michael Jordan has said everything you need to know so fail and fail again; success will embrace you.
3. Risk of abandoning ineffective relationships
One of the painful risks is that entrepreneurs have to break some of their closer relationships to go forward. We all have relationships in our life but have you ever thought all those are effective? Somebody can feel sad when asks like this. But relationships are essential for life because we are all connected to the world process. There are two kinds of relationships as effective ones and ineffective ones.
Ineffective relationships give you negative thoughts and ideas; it will kill your success in just a few minutes. For example, Mike Tyson, one of the greatest American boxers, lost $400million by spending on materials and having fun with his toxic friends.
As an entrepreneur, you have to get rid of inefficient relationships even if you don’t want to because it is one of the closers risks you have. This is called risk because you may have to deal with people with whom you have a close relationship. But if you need to embrace success as an entrepreneur, you should avoid negative relationships.
4. Risk of starting over again
When you fail a mission in a video game, they will restart the game and give you a chance to win. So life is like a video game; it gives you a second chance for every failure. But life is the reality so, it’s hard to start over again than a video game. Many people give up when they fail but, every entrepreneur never gives up till they succeed among so many risks.
Facebook wasn’t the first thing I built. I also built chat systems and games and study tools and music players, and I’m not alone.
Mark Zuckerberg
Starting over again is not easy, but if you once fail, you know what caused you to do it in the past, so you can fix them and restart the life game again. One who really wants to be successful must know to learn from mistakes and try again. Risks are common to all successful people but quitting is doesn’t make you succeed; that’s why you should take the risk of starting over again.
For a better example, according to a United Nations report, covid-19 could end up costing the global economy more than $4 trillion. So it affects all the businesses and jobs too. And you may have seen some people leave their jobs during the pandemic due to low salaries. But in such an economic collapse, it is something that should never be done. So the only thing that can be done to rebuild the economy is to restart.
5. Misunderstand Risk
The next risk you need to take to be successful is to face the low opinions of friends. You may have to be criticized by others when you come out from your comfort zone because other people are still in their comfort zones. They will tell you like “you are crazy, it’s too risky, can’t do it” when trying to do something new. But entrepreneurs don’t care what others say because they know others are in their comfort zones with poor mindsets.
However, unfortunately, it takes a lot of dedication to succeed. Not only your effort, time and money, but even it might also be your favourites. The only thing you need to do to reduce the risk is to avoid arguing with those who criticize you.
6. Risk of sacrificing your personal time
It’s essential to sacrifice things in your entrepreneur journey but time is the most important and valuable thing in life, so sacrificing something like that might be a big risk. Unfortunately, you must have to do it.
Becoming a successful entrepreneur requires so many risks. There are many ways to spend your time towards your goals. But that way, sometimes you will have to miss some important things in your life such as parties and many more enjoyable moments. As we all know that, parties and festivals are not much important for an entrepreneur but the society around you may criticize you.
Of course, there are so many time management tricks you can find but remind for a second about your competitors and their sacrifices. However, time is actually the most important for every person in the world so how to spend it is all up to you.
7. Financial uncertainty
Many people prefer to do a job after school or graduate. It’s not a bad thing but, you may know an entrepreneur means not a person who does 8 to 5 jobs. But the reason why many people choose jobs over business is they think they will be financially stable with their salary yet they don’t afraid to take finacial risks. Unfortunately, the truth is that salary destroys your dreams.
As entrepreneurs, taking financial risks is essential when starting your own company or business to make your asset. You may know the difference between business and job and how it affects your success. So entrepreneurs will always backup some wealth to use in difficult situations. They know how to manage their finance at risk.
A person who works for a salary can not build his wealth successfully because the salary has a constant income without ascent. But the only benefit remaining on salary is there is no risk because they are a part of a huge business, so the business owner has the major risk to the entire business, including the employees.
8. Market Risk
Market risk is the possibility that an investor or organization can experience losses due to the market fluctuation. So we can take this situation as a great risk in a business as an entrepreneur. There are many reasons that directly affect to this market fluctuation. For example, with the volatility of global currencies, many businesses are exposed to risk, especially when entering foreign markets.
Market risk cannot be eliminated through diversification and it may arise due to the exchange rates, geopolitical events, interest rates and more. Getting a better understanding of impacts that cause to market drop and getting more knowledge about the current and future market trends will help you to play an ongoing game in the market by reducing considerable risk.
9. Inflationary Risk
Inflationary risk is the risk that the future value of the currency an investment, asset, or income stream will be reduced by unanticipated inflation. it’s not a thing that only impact to entrepreneurs but also all the individuals who survive their local monthly salary. Inflation is sometime profitable for some businesses such as businesses that work in international market. But local business will extremely drop and some can be eliminated due to a high inflation.
To mitigate risk of inflation, entrepreneur can diversify their investment and also hold there money as in assets like crypto. Also, in a local businesses, you may have a chance to expand the business to the foreign market.
10. Unexpected Success Risk
The final risk that you should take for your success is an unexpected success. Unexpected success means success without a process. We can take an example, someone who wins a million-dollar prize or lottery without knowing any financial matters. If the guy does not know how to invest it or how to spend it, he will face a greater risk than he has ever faced before. That is why financial education is so powerful; you can reduce some of the risks with your knowledge.
He will spend it on more things like buying a house, cars, and more unnecessary stuff. That is the main reason for the poor still being poor without getting rich. They don’t know how to manage their money, and they are afraid of money. So the lack of knowledge and experience is the main reason to occur this risk; otherwise, this is an opportunity for someone who knows about financial rules and how to manage money appropriately.
