Risk taking is an integral part of the entrepreneurship. An entrepreneur is responsible to take their own decisions and face the outcomes. However, sometimes, the new business owners prefer playing safe instead of taking new challenges and thus, restrict the growth of their business. Here, Justin Urbas has identified some such risks which you should take to boost growth of the business.
Sacrifice the steady income:
There are many entrepreneurs who see their business just as a source of extra income and thus, do not put their entire effort for it. But, this approach will not work when you are dreaming to be a successful businessman. For running the business smoothly, you should be ready to work hard. Obviously, to do this, you have to sacrifice the current job or any other task that keeps you involved for the whole day.
Most of the new entrepreneurs, while starting business, hesitate to take the decision as there is no guarantee for steady income in initial days. But, the business owners encourage budding entrepreneurs to take this risk if you want to succeed.
Be ready to invest personal income:
There are some lucky entrepreneurs who can start their business with the external funding only. It means that these business owners mainly depend on loans, grant and finance of angel investors to start the venture. But, everyone may not be lucky as them. It may happen that the external funding you are obtaining is not sufficient for the business and in order to manage expenses you have to finance it personally.
In these circumstances, you should not hesitate to invest the personal capital. If the business is managed in first few months, you will enjoy the benefits later.
Manage the cash flow:
Even if your business is financed perfectly, managing day to day expenses may become difficult in initial days. The situation can continue in so called profitable years also if the revenue does not generate on regular basis.
However, under any circumstances, you have to pay the monthly bills. Sometimes you may find it is quite challenging. To avoid it, you should be ready to collect cash so that the regular expenses can be managed without any difficulty. It also may require personal investment in some cases. Do not step back to put your personal finance to the business. It will help you to create a clear image to investors and other partners. It, in turn, will be effective to grow later.
Trust the key employees:
During initial days of your business, developing a full team may be difficult. Thus, in these days, you should try to create a small group which can work for long hours and can handle multiple tasks. To get everything done on time, you will have to trust these employees. You will also have to find out the special skills among them and utilize those for your organization.
Instead of hiring the entire team, you can recruit one or two senior professionals also to fulfill your requirements. In that case also, having faith in their abilities is necessary for completing tasks on time.