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Starting a business can be an exciting venture. The startup economy is rich with opportunity and innovation. However, it is also burdened with high – stake risks. Jumping into the deep end of the startup pool is a lot less frightening when you understand and calculate the risks. The path-dependent risks will affect the decisions you will make. The decisions you have made in the past or experienced events will limit the present decisions.


  • Going it Alone.
  • Ignoring Instincts.
  • Skimping on the Business Plan.
  • Handling Money Incorrectly.
  • Launching at the Wrong Time.
  • Lacking the Ability to Adapt.
  • Getting the Hiring Process Wrong.
  • Thinking Too Small.
  • Having Too Much Outside Influence.
  • Choosing the Wrong Location.

Tackling the Risks

Product Risk – Make a decision about what you are selling. You need to explain what the product is, the issues it solves and why it’s worth investing in. Its all about getting people to pay attention and release their investment dollars. The product needs to meet the right opportunity at the right time in a big enough market. 

  • Do the research.
  • Know the environment.
  • Convey how your business fits in the context of the environment.

Market Risk – Before introducing your product know your customer and why, how and where they purchase related products. The success of your business will depend on how successfully you can identify:

  • Identify the routes to the market.
  • Build them effectively.
  • Build them in an opportune manner.
  • Build them within budget.

Financial Risk – First-time business people have tools such as Indiegogo and Kickstarter. They help crowdfunding to get money in the bank. In addition family and friends, traditional VCs and angel investors are all sources for your assets. If you can express your growth path, business plan and reach each milestone effectively you will build confidence in your investors to write the next check.

Team Risk – It is important to have a confidante and a great team. You can share ideas, build a product, bring it to market and keep growing successfully with a great team. To be a successful entrepreneur you need to accept advice from others on how to reduce risks.

Execution Risk – You should keep the overall company policy and route in mind. Also be aware of the crucial details that result in major problems. It is important to register a balance between being the small manager and the 30,000-foot-view strategist.

Avoid Being a Statistic on the Road to Success.

You need to be aware that: 

  • 50% of all business fail within 5 years.
  • 25% of new businesses don’t survive past year 1.
  • 10% of the corporations that make it past year 5 will fold in the following year.

Two founders rather than one will considerably increase your odds of success. You grow customers 3 times as fast, raise 30% more investment and be less likely to level to 0 fast.

95% of capitalists have at least a bachelor’s degree. If you remain at school you will develop discipline, knowledge connections. The odds will be in your favour.

Following the well-documented advice will ensure your startup has the best chance of success.

Vijith Sivadasan

Written By Vijith Sivadasan

An enterprising visionary and a serial entrepreneur, Vijith is driven by instinct in his pursuit for creative excellence. Passionate about transformational marketing strategies, he enunciates the critical need of analytic skills to maximize business potential. To know more on how he can add value to your business, drop him a line at

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