There has been a well propagated boom in startups and venture capital in recent years. They have received not just a great deal of recognition, but also a little scrutiny. Individuals of all ages are determined to start up something new or motivate someone to start up something. On one hand, there are startups that are being inoculated ever so often, yet there is another startup which found its place under the sun, basked in its glory, but is now making its way towards the sunset.
As an incorporator, you must be tenacious about commercializing an idea that will change the world, but what you really need is, considering and assessing the risks that are a collateral part of launching a startup. If you are able to identify these risks early on and determine how to approach them, you will escalate your chances of success. Here are some associated risks that are bound to occur when one embarks upon their startup journey:
1. Product Risk: Single out on what you want to sell. As an entrepreneur it may seem like an easy task to determine, but you need to elaborate the potential of your product, the issue(s) it has the capability to solve, and why is it worth investing in your business. Being the founder, it is imperative that you ensure that your product addresses a wider section of the market & has the right scope in that market, at an appropriate time. It is crucial to do the research, have adequate knowledge of the landscape, and check if and how your business conforms to the landscape.
2. Market Risk: Before entrepreneurs launch their product, it is conceivably of paramount importance to be extremely familiar with the potential customers and know how, when, and from where do they buy the relevant products. Research and identification of the possible pathways to the market, and whether they can be built within a specific time frame and budget, contributes in determining the success of your startup.
3. Financial Risk: There are certain tools like Kickstarter and Indiegogo that enable crowd funding to get money in the bank. Moreover, friends and family, angel investors and traditional venture capitalists can help in kick starting the entrepreneurial journey.
It is vital to bring to light, the key business milestones that clearly identify the points in time when equity or debt investments are necessary to reach the next crucial stepping stone. The factor that builds confidence in potential investors to invest in a startup is the founder’s capability to express their business plan, growth path and the capacity to cross each milestone successfully.
4. Group Risk: It is advisable to have a great team and a sound board - a mentor, a confidante &a renowned startup accelerator can help prepare you for forthcoming challenges.
To think of innovative ideas to build a product, bring it to the market and eventually maintain successful growth, an entrepreneur requires a competent and a visionary team because there is no way one person can conquer every risk alone.
5. Implementation Risk: Very often, entrepreneurs can become clogged in the details that they might completely lose sight of the overall company strategies. Alternatively, some company founders remain at a high level and overlook crucial details that result in major hurdles. But it is important to strike a balance to ensure long term success.
Despite the fact that it is an everlasting process, risk analysis is extremely essential in the nascent stages and is crucial to guarantee success. Accelerators play an important role here; they contribute in minimizing future negative unforeseen failures by plugging the loopholes. Startups that enroll themselves with accelerator programs benefit immensely from an intensive curriculum aimed at providing professional business consultation and access to valuable resources over a span of a few months. Accelerator programmes extend additional benefits through legal/financial help, infrastructure, support and training that would otherwise be time-consuming for start-ups.
For instance, the founders may not be adept at all operational areas and usually the tools & strategies efficacious for larger organisations, aren’t useful enough to a growing business. Accelerators aid in building strategies, monetary forecasts, and technological roadmap thereby reducing chances of failure by alleviating the risks involved. Thus, apart from funding, an accelerator can provide you 360 degree cross-functional mentorship and help your business rise to newer heights.
Join an accelerator programme to learn, ideate, create and accelerate your journey to success.