What exactly is Risk Management?
This is basically taking a risk to start your business within a controlled space. You can take the risk and also have plans for retaliation in the event in the event of an emergency (e.g. for instance, if you are unable to get ammunition on the market). This is called Risk Management in the startup world. I will provide a brilliant example.
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Someone has just launched an unassuming business selling mobile accessories on the internet. He knows that there’s a massive market online for mobile accessories and that he needs to compete to reach his customers. Before he can enter the business, he must be aware that his product is both distinct and inexpensive. If the product is cheap; what makes it unique. To accomplish this, the buyer must visit all sale markets. Once he has identified what he requires, the next step is to place a bulk order. Then, when selling his item online; he will get clients sooner or later. However, what is important is that the risk he took when he placed an order in bulk; at the same time the research was done for uniqueness and price control. This is referred to as Risk Management in startup world.
Every startup in the world is a failure when it runs out of credit. It is clear that money is your startup’s lifeline. Risk Management is what you must be aware of so that your spending to be tracked. How do you do this?
1.)STOP SPENDING STUpidLYYou are not here to impress your girlfriend on a date. Don’t be a show off no one needs to be aware of your spending capabilities. Your customers only need a great product with excellent services. They don’t want expensive machines, highly salaried employees or your impressive infrastructure. It’s a no-no. This is the beginning phase. Concentrate on top products, top-quality services, and exceptional marketing. This is all you need.
2.)Don’t take a run with your eyes closed.Another reason why startups fail is that they invest in the wrong product or services, but without an industry survey report. What’s the reason? It’s the way to put yourself at risk for a large amount of money. You’re not prepared to know what your customers are looking for. Instead of being like the horse, you close your eyes and keep running straight. Take a look around and understand your market don’t get intimidated by a a service you like. Know what the market wants as well as what the customers’ needs are and work accordingly.
I am not saying don’t make a gamble. I’m just saying that you shouldn’t take one without a strategy.