What are the high risks of entrepreneurship

Risk one, project risk

Choice of project too much with the blind, entrepreneurial lack of preliminary research and demonstration, by virtue of their own subjective consciousness or a momentary interest in deciding to invest in the direction of the momentary whim may be the end of a headache.

Do a good job of market research, in the understanding of the market on the basis of entrepreneurial success rate to be much higher, for inexperienced entrepreneurs may wish to start from a small business, to achieve a stable start, small scale, ambition, calculated fine.

Risk two, capital risk

Early stage of the business for entrepreneurs, capital timing the biggest problems encountered, business start-up, we must consider to have sufficient funds to meet the daily operation of the business, start-up capital forecasts, can not be too optimistic estimates of the break-even point, generally be prepared for the first three months of unprofitable. Cash flow interruption whether to take financing channels, such as private lending, bank loans, venture capital, start-up funds and other forms of financial problems encountered when the risk will follow.

The effective way to avoid the risk of capital is the rational use of funds in the early stage, to do a reasonable forecast, good steel on the knife edge.

Risk three, management risk

The first time entrepreneurs on financial management, marketing, communication, management ability is generally insufficient. If you want to succeed in business, you have to start with both technology and management. You can start with a partnership, a family business or a virtual store to practice your entrepreneurial skills, or hire a professional manager to manage the daily operation of your business.

Risk four, the risk of competition

Looking for the blue ocean is a good start for entrepreneurship, but the Internet entrepreneurship era want to find the blue ocean of the industry is like looking for a needle in a haystack, or to find the blue ocean, but the blue ocean may also be temporary, so the competition is inevitable.

Survival of the fittest is still applicable to the enterprise, if the entrepreneur chooses the industry is a very competitive field, then in the early stage of the business may be sidelined by competitors. Some large enterprises will be annexed or squeezed out of small businesses, the use of low prices, policy pressure and other means. The way to deal with competitors need to be hard, for competitors to be strategically defiant, tactical attention. Recognize and understand the cruelty of competition in order to have a place in the industry.

Risk five, the risk of the team

Now the enterprise is a team of enterprises, an excellent enterprise must have a group of excellent talent, but often there are people where there is disagreement, the greater the power of the team, the greater the risk of generating once the team disagreement can not be united, it is very likely that the enterprise will cause a strong impact.

The difficulty of running a team is no less than running a company, especially in equity, when interests are associated, can **** bitter can't share the same sweet, the small partners will also be upset.

Risk six, human resources risk

For high-quality talent or business-oriented talent composed of companies, to prevent the loss of technical or business backbone is the entrepreneurs always have to pay attention to the problem, sometimes a person may be the core of a company's barriers, the treasure is bet on a person is a fatal threat to the enterprise to deal with human resources issues in addition to the rules and regulations, and more to play the friendship card. Card, the initial start-up, in the requirements of the high wage is not given, you can give full respect to achieve the retention of talent.

Risk seven, financial risk

According to the survey data, 73% of people believe that entrepreneurship will eventually face a backlog of inventory. In dealing with inventory 71.5% will choose to sell on credit, 32% of people familiar with the current business will not be credit assessment, and even 8.5% of people do not assess all the current business, which to a certain extent affects the ability of the enterprise to realize the liquidity of the business, increasing the liquidity risk. At the same time, a higher proportion of debt is also an important cause of liquidity risk, when a business can not repay the debt due, the enterprise will face the danger of premature death. Modern entrepreneurs in the actual entrepreneurial process but can not apply financial knowledge well, and can not carry out comprehensive control and budgeting of costs. According to the survey, only 33.5% can accurately identify the types of costs, 57% can only distinguish some of the costs, 15% basically can not distinguish.

Avoiding financial risk in addition to their own learning, you can also look for a formal outsourcing company entrusted to its agent bookkeeping or tax returns. After the development of the company to a certain size, you can ask a slightly larger financial company to issue a financial analysis report, through financial analysis to find business problems, to achieve the purpose of preventing and preventing.

In addition to the above seven risks, in the process of entrepreneurship will also encounter, marketing risk, legal risk, and policy risk, risk is everywhere, and the growth of the enterprise as the shadow of the following, the risk is not scary, scary is to know that there is a risk of being smart, opportunistic.