The thought of being an entrepreneur is alluring to many people. Some create a startup because they want financial independence. Others just want more control over their lives. Whatever your reason, the road to making your successful startup won’t be easy. There threats you will have to learn about and face if you want to make it. Here are 7 of the most common threats to your startup you must know about:
Threat #1: Natural Disasters
Natural disasters close out a lot of startups and small business. Some companies simply do not have the resources or contingencies in place to recover from having operations interrupted in a severe manner.
If your startup does not have a risk management plan for a natural disaster, you are courting the end of your startup. There are numerous things to consider, from what disasters will directly impact your operations to what your insurance covers. Get a plan in order, and you’ll be prepared to handle that threat.
Threat #2: Getting Distracted
One of the most innocuous yet deadly threats to your startup involves distractions. As the entrepreneur, where you set your focus determines how well the startup will do. Every distraction that draws your eyes away from the company’s goals delays your milestones.
Adding neat, but ultimately unnecessary, features to your product will delay its release date, which naturally delays any revenue it can generate for your company. Keep your eyes on the prize.
Threat #3: Data Theft
As a startup, trust in your company and product is tenuous. Your brand has no history to fall back on, making every misstep a potentially fatal one – and one of the most common mistakes is to not protect your consumer data well enough.
Larger companies can get away with someone stealing customer information. If you suffer from that attack, your brand will likely never recover.
Threat #4: Aiming Too High
While having a massive overarching goal is good for you and your startup, you will also need to have more measured milestones in place.
Aim too high, too early, and you will end up overwhelmed, trying to reach a goal that you do not have the resources or experience to achieve. Set more immediate goals you can clearly accomplish. Start small.
Threat #5: Quitting Quickly
Entrepreneurship is difficult. Uncertainty surrounds every situation, and every action feels like it could be the mistake that tears the entire endeavor apart. After a few setbacks, you might feel like your decision to become an entrepreneur was a huge mistake.
Despite all the issues you encounter, you should not quit too quickly. You’re going to run into a lot of problem, but that does not mean you are doing poorly. That is part of the experience of running a startup. There are many reasons to consider the startup failed, but having problems is not one of them.
Threat #6: Legal Problems
Litigation is a dangerous threat to your startup. Whether or not the allegations are founded, the fact is you will have to defend your company, which is a costly endeavor. There is no way to truly insulate your business from legal troubles. All you can do is limit the damage.
Liability insurance is a good start, as it can allow you to continue operations as you handle the suit. Talk to your insurance agent to ensure that you have the best coverage you can afford.
Threat #7: Stress and Burnout
Some threats to the startup are internal rather than external, and one of the biggest internal hurdles an entrepreneur will face is burnout. Stress will become a constant companion to you as you run your startup, and that stress will take its toll from your mind and body.
You will get sick, and as you press on, you risk suffering from burnout. Having a positive attitude will not be enough to handle the problem. You need to get enough rest, as well as develop coping strategies, if you want to survive.
There will be numerous threats to your startup’s existence, and those are only a few of them. However, these are some of the most common ones, and having contingency plans ready will make your startup a little bit safer.