Entrepreneurs have the DNA of risk in their veins. Starting a business is daunting and requires a lot of work and effort on part of the business owner. Taking risks is normal in this line of business. But sometimes, the risks are too heavy to justify. In such conditions, we have to look for another way to meet the business goals.
Taking risks is important for entrepreneurs, but minimalizing the risks is equally imperative.
You can have what you deem to be an ironclad business plan which you may have made with a business plan consultant, but even then there are ways you can minimize risk. Let’s take a look at how we can go about doing that.
Take The Advice of Industry Experts
While shaping your startup, professional support is of immense help. Experts help in identifying the potential risks that you might expose your company to if you choose a certain route. They help with ideation on how to overcome such obstacles or shut down some ideas if the obstacles are too big to cross. Start-up consultants, start-up mentors, business advisors, angel investors, business plan consultants, etc. are all professionals from whom you should be taking advice. They are professionals in their line of work and can help you break down some ideas and help you mitigate some risk from the equation.
Create a Roadmap Around Risk Reduction
A start-up in its early stages is bound to hit some kind of wall or problem. A start-up should be treated as an experiment in its early stages. As such contingency plans should be put in place to mitigate the risk factor. With that, creating a roadmap can also be of use. A roadmap helps you structure your decisions in such a way that you don’t create false hopes in terms of milestones you want to complete. Be realistic and true to how much you believe you can achieve in a given period. This will help mitigate a lot of risks.
Your roadmap should also clearly state the risks of every idea you want to implement in your start-up. Structure it around a rational sequence of milestones. Do this in a way that your most important questions can be tackled and answered first.
A Transparent Work Culture
A transparent work culture should be the top priority for your start-up. It’s easy to assume as a start-up owner that all your employees are open and honest seeing as it’s an early-stage start-up and everyone is working together to achieve a certain goal. However, just because you are open and feel that communication is good enough in the company doesn’t mean your employees feel the same. Establish a transparent work culture and one that encourages and rewards transparency and communication. This policy reduces the risk in your business and helps create a stable and healthy working environment.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps in start-ups funding India from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. Being a business plan consultant he has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.
Check out a blog about Lakhani Financial Services written by Karo Startup here.
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