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Managing the Risks & Resolutions in a Startup

We all know that uniqueness and innovation are key to success − everything starts with a business idea. Think of successful startups of recent years, former startup such as Uber, which is currently worth $91bn (as valued in October 2021), and has given rise to many similar app-based startups, globally. That said, even a quick-thinking entrepreneur knows that success depends on how you manage your business, above and beyond the service or product that you are trying to sell. This article examines the risks many new startups face, suggesting how to steer your company through the maze. Let’s begin.

Obtaining funds for a startup

A big challenge for many startups is securing sufficient capital which would allow their company to grow. Funding comes from business loans, venture capital investment, or even crowd-funding schemes. Yet, these funds might not always be enough – especially if there are challenges that present, which were not budgeted for, and for a new business, these may be numerous. As a result, the money can dry up – a fear for many business owners. Investors often demand some sort of coverage for the purpose of safeguarding their investment. Others will invest based on the business idea alone, irrespective of whether the startup has a healthy balance.

Onboarding new staff for your startup

Attracting top talent can be near impossible – since those with the skills that are in demand will be snapped up by large corporations. Most employees will be hesitant to work for a startup that runs the risk of closing faster than it took to launch. Remote workers or virtual assistants are an option. The business can thus remain agile and react more quickly to changes without being stuck with on-site staff they now either can’t afford or do not have work for − a project might have closed or been delayed. Outsourcing, however, allows a company to obtain the skills required to do the tasks, in a cost-effective manner, and to make changes where needed. This change of working is a solution for startups that want to remain compliant with state, federal, and local laws, and still want to be flexible enough to grow, and to grow quickly.

Facing daily risks

With business comes risk. There is no guarantee that your business idea will succeed. More so, there will be people who intend to damage your brand. Such include those who make fake claims, or cause damage to your property. To protect yourself against these risks, a vigorous risk-management plan is needed, with wide-ranging liability insurance as the basis. For instance, if you have a client slip on your property, there could be claims for medical expenses, pain and discomfort, and even lost wages. If you have a general liability cover, the policy should protect you from these claims.

Solving tech problems

A reality for most companies and individuals is increasing cybercrime, and also connectivity issues. Small businesses and startups are not spared. In fact, the impact on them can be even worse. You need to protect your data against hackers and malware attacks. To protect your business can be costly. As such, you need to relook your budget and to see that you have made provision for cyber insurance policies. But also, do not leave it there – you need to educate your staff to follow best safety practices, thus limiting your risk.

Scaling up as a startup

No matter what your hustle is, as your business (irrespective of size) starts to grow, you need to focus more on scaling up. This can result in stress. You need to expand your customer base, and to extend your marketing and sales efforts. This is also when some weaknesses can emerge – such as not having the right software to work efficiently, lacking the hardware to run this software on, or even simply lacking sufficient staff to complete all the tasks. Then again, your scaling can differ from another’s. Still, to succeed you need to build a strong and solid team – and this is where delegating is vital. Staff is not an issue, since you can always outsource. What is important is to protect your efforts via a strong risk-management plan, while focusing on innovation and improving your management abilities.

Plan your destiny

Warren Buffett once remarked that a fool with a plan is better off than a smart man without one. This is so true, since you need a plan to get ahead. What sets many entrepreneurs apart from those who make it big is that they do not look far enough ahead. Start to look ahead, and throw a curveball or two to test your ideas. You, as a leader, need to make sure that you protect your team. Therefore, cover all the bases. True you might not know them all, but you must know those you need to deal with as you proceed.

We recommend you increase your chance of success by following Mads Singers’ Mastery Management Course. Acquire the skills needed to deal with people, and make the right decisions. To learn more about this course − and we highly recommend it as we know the benefits − do click here.

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