reduce business risk
Business and Management

11 tips to reduce the risk of starting a business

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“The risk comes from not knowing what is being done.” The famous phrase of the American millionaire Warren Buffett, one of the richest men in the world, serves to encourage people to undertake. However, the truth is that opening a business always involves a risk . What Buffett means is that, with good planning, study and insight – that is, knowing what is being done – the chances of failure are greatly diminished. reduce business risk is important.

Considering this premise, when observing a large number of companies that have failed before the five years of activity, it is perceived that a good part of the entrepreneurs do not know what they are doing.

Among the most frequent causes of failure are errors such as starting a business with little capital , ignorance of the market in which it will act and the legal and tax responsibilities of a company, the lack of technical knowledge, the errors in choosing the points of sale, insufficient marketing planning, lack of financial control and mix personal accounts with those of the company.

Do not fear the risks

You got scared when you read the previous paragraph and you realized how much you need to take care not to break a company. The first tip is to not let fear dominate you, because everything is learned and may seek advice on courses, books and professional.

“I met many elderly people who would have taken more risks to follow their dreams, ” said Simon Woodruffe, founder of the restaurant group Yo! Sushi at BBC.com.

Do you want to be like these people and repent at the end of your life? If the answer is no, know below some advice from the Consultant Marcelo Baranski Feres, of the Brazilian Service of Support to the Micro and Small Companies (Sebrae) to diminish the risks of an enterprise. reduce business risk is important.

How to reduce business risk? reduce business risk

  1. Evaluates the characteristics of the market and brings together, as an entrepreneur, a vocation to deal with them.
  2. Avoiding the risk consists in carrying out an adequate planning. Create a business plan that includes an analysis of the market (customers, suppliers and competitors) and the necessary structure (physical and personnel). “Along with that information, it studies the economic and financial viability of the future business. That is to say: will it give money? In how much time? How much ?, says Feres.
  3. Assign resources according to planning and avoid making decisions based on emotions , such as spending more than you owe.
  4. Find partners and investors to reduce the risks: you do not need to do everything on your own.
  5. Make a good marketing plan to show the audience “who is the one who came”. Create a brand and a visual identity relevant to the concept of your business.
  6. Look to differentiate your company from the competition. “Making new products, remodeled, or in an unconventional way will attract the attention of the public. That will generate business, “says Feres.
  7. Listen carefully to the evaluations and claims of customers, suppliers, neighbors and friends. “Process that information and decide to dare – taking care of many of the needs and deficiencies that you identified during the conversations”, recommends the consultant.
  8. Be yourself the “seller” of your product / service. “Your role in the business does not matter much, but I know first of all that one who has contact with the client and does business,” advises Feres.
  9. You always have to be willing to innovate . “The world and the market never changed so quickly, therefore, always be willing to accompany the speed of change in relation to the market in which you act,” recommends the consultant.
  10. Respects the plan of marketing and follow the path identified in the business plan.
  11. Create processes within the company to improve the management and organize the areas of customer service, finance, marketing / sales and operational.
Sudip
The writer of this article, currently manages his own blog moment for life and spread happiness and is managing to do well by mixing online marketing and traditional marketing practices into one.

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