What risks does an entrepreneur face?

fuad lawal

April 17, 2015 6:51 PM

The game of being an entrepreneur is a game of risks and rewards. The challenges entrepreneurs face are not only operational ones, but demand a lot from your psychological state as well.

Entrepreneurship is made for risk takers, without investing money, resources, time, and passion they won’t gain anything, and at the same time entrepreneurs constantly face the risk of losing more or less everything. Becoming an entrepreneur usually requires sacrificing the financial security that people enjoy as a full time employee as well as the extra time spent with family and friends, all in a bid to fill an existing need in a new way.

Many new entrepreneurs experience huge setbacks as a result of failed attempts at risky endeavors. These include depleted bank accounts, huge credit debt, and foreclosed homes. Other drawbacks are failed marriages, stress, and depression among new entrepreneurs. Furthermore, entrepreneurs face the fear of building a brand with no established reputation, failing to keep up with the changing needs of their target market, adopting wrong marketing strategies, making bad hiring decisions, and being unable to keep a steady flow of customers.

So, every aspiring entrepreneur should expect to face a good number of ugly challenges as they pass through the gloomy tunnel of building a business. This means expecting to make mistakes and losing money along the way.

So why are people actually considering leaving the safe haven and become an entrepreneur keeping all the risks and fears in mind? It is the desire to achieve something, to be your own boss, to show others that you are able to compete in this way, to contribute to economic growth by building companies, and providing new jobs. Or you can name it, to be free.

Content provided by TopCheck.com.ng - Nigeria's free price comparison tool for financial products

fuad lawal