Remember, it works in both ways, whether you are supplying overseas or you are getting supplies from the global market.

An ideal solution to this risk in entrepreneurship

This entrepreneurial challenge has no surefire solution as it is somewhat difficult to predict them. 

And the best entrepreneurs are those who keep a close look at these future risks and have a way to keep their profits unharmed after taking this into account.

4. Cyber Security Risks

One of the most common entrepreneurship risks and challenges, especially in today’s world is – cybersecurity risks. Everyone knows its drastic effect (in terms of costs and valuable data) if your confidential information leaks out.

And as per Cybersecurity Ventures, “Global cybercrime costs to grow by 15 per cent per year over the next five years, reaching $10.5 trillion USD annually by 2025.”

The cybersecurity risks not only lead to trust issues but also amount to millions and billions of losses. So, every entrepreneur should be geared to face such risks in the future of their business.

Solution: Identify the threat and use two-factor authentication

First, you have to identify prospective cybersecurity risks and see what areas needed security. 

After all, the first step to solving a problem is to identify what needs to be solved. Once you are through with that, make sure that you use a two-factor authentication system.

Two-factor authentication method requires you to enter a password along with a code (which you will receive on your smartphone), something that only you have access to.

While you are at it, don’t forget to encourage your employees to do the same and use proper spyware removal tools.

5. Maintaining a Steady Customer Pipeline

Convincing your first client is hard enough, but even when your business is up and running, maintaining a steady customer pipeline is not straightforward.

It is also somewhat of a difficult task to get people to put their faith in you when you are at the early stage of your business. 

For that, you have to work on building a loyal community and a large network of prospects to get a steady lead flow in your pipeline.

Solution: Get referrals and use word-of-mouth marketing

This is where you can leverage tactics such as word-of-mouth marketing, customer testimonials, and the list goes on and on.

Also, if you see that someone in your network might help you out in getting more leads, then don’t hesitate to reach out. Ask for referrals, recommendations, and anything else to get the word around.

You can even use Bing or Google Ads to grow your client pipeline.

Came as a shocker, right?

Listen to what Duane Brown, the founder and head of the strategy at Take Some Risk, Inc., has to say about Bing Ads and how he got a steady lead flow through the platform:

Moreover, if you want to get started with building a community using a referral chain and word of mouth, you can get every information regarding word-of-mouth marketing, and other forms of customer referrals.

6. Trusting Your Business Partner or A Key Employee

Many entrepreneurs overlook this, however, trusting a key employee or even your business partner is one of the most common entrepreneurship risks.

For one, when you are just getting started, you are unlikely to have hordes of employees. Instead, you will probably have a business partner and only a few employees.

To get things up and run the business smoothly, you will have to put a huge amount of trust in your business partner or a key employee. 

But remember, this risk is unavoidable as you don’t have many options at this stage of life.

There are so many consequences that can arise in case if this trust turns out to be misplaced. 

Firstly, your trusted employee or partner will be privileged to so much important data and information regarding your company. Plus, putting all your absolute trust in one person’s ability might also lead to a miss in timelines.

7.  Sacrificing private capital

Want to become an entrepreneur? That’s wonderful!

But have you thought of the funding that you will require to start your own business venture?

Many people are able to pull it off and many are not. 

More often than not, you have to shell out your own private savings to fund your business venture.

This is one of the most common entrepreneurship risks as it burdens you even more.

If God forbid, your business venture fails to pick up, then you might not even have a safety capital to fall back on. This is actually a big risk to take, however, once things start to pick up, you will be happy that you took this risk.

8. Investing Your Personal Time & Health

If you think that being an employee takes away your social life and the maximum amount of time (and health), then you haven’t seen anything yet.

Being an entrepreneur is a tedious task that will take away a lot from you.

Initially, you might even feel like the whole business venture is only taking away your resources without giving away anything in return. 

Moreover, the lack of returns and profits might take a toll on your mental as well as physical health but now that you have started your business, make sure that you don’t give up in between. 

Maintain a healthy lifestyle by starting your mornings with productive routines, ending your nights with enough sleep, and taking breaks throughout the day. Yes – power naps count too. In fact, Sleep Advisor experts noted that power naps improve your productivity and overall well-being.

Consider this as nothing more than a few obstacles in the path.

Always remember that you are not the only one undergoing these risks in entrepreneurship, in fact, it is one of the most common ones. However, once everything works out, we ensure you that it will turn out to be a risk worth taking.

Conclusion

So these were some common entrepreneurship risks and challenges for your upcoming year. 

However, the key is to embrace these risks and surpass them with confidence.

The best way to undermine these common risks in entrepreneurship is by creating a perfect balance between the risks and rewards. 

And remember, don’t expect a high ROI (return on investment) if you are not willing to take some risks.

That said, don’t take too high a risk that you have bad instincts about, especially if you don’t have a dependable plan to fall upon.

This doesn’t mean that you will always succeed. Sometimes, you might have to run into risks that can not deliver the outcome you desire for. 

But the best way to go about it is by learning from your mistakes.

So, let us know which entrepreneurship risk or challenge are you worried about the most. 

Also, if you are at an early stage of your startup, we know that you need to take care of some other challenges apart from the ones mentioned above. 

For that, we recently covered some great points. 

You can read the article here: 6 Biggest Challenges Faced By New Startups.