HOW TO BECOME SUCCESSFUL ENTERPRENURSHIP PART 3
Identifying The Risks And Countering Them
1
Do A Research On What Problems
Similar Businesses Faced
No matter how
unique your business idea is, it is highly likely that another entrepreneur in another place already tried
the same business
venture. You can observe the difficulties that they
faced. You can also take a look at your future
competitors. Observe what problems they are facing and how they are coping up. This will give you an idea on how to overcome risks, pitfalls, difficulties, and hardships related
to your planned
business venture.
2
Think of Possible Reasons
For Your Business
To Fail
This requires
some wild but realistic imagination. Think of possible reasons possible
events, and possible
circumstances which might cause your business to suffer or fail. If you are opening a shipping company
for example, possible
risks may include
the following: fluctuations in gasoline prices, frequency of natural calamities in the area that might
affect shipping, scarcity of competent delivery truck drivers, dishonesty amongst employees, and other similar
reasons.
3
Formulate
Possible Solutions/Preventive Measures To Possible Risks Enumerating possible difficulties that you might face is only the
first step. Next, you have to think
of ways on how to counter them should
any of them happen.
You need to be ready for all the possible situations. This is part of the so-‐called
‘risk management’ which
many companies invest
a lot of effort into.
4
Get a Business Advisor
It might not be
necessary in all cases. Smaller businesses for instance may have no need of one. But for bigger businesses
that deal with complex markets and industries (investment/loan business, real estate business, foreign
trading business, etc.), you might just need an advisor
– someone who is knowledgeable in the field. This is
especially necessary if there are some things
in your chosen field of business that you are not very familiar with. Be
ready for several advisors if
necessary. In some instances, it will help to have opinions from several individuals.
5
Assume That Possible Risks Are Real
You have to progress
with the mindset
that your assumed
risks and dangers
are real. Some businesses fail at this and they begin to lax. If you do
this, it is as though you are
underestimating the risks involved. If you underestimate the risks, they might hit you hard when you
expect it least and when you are least ready. Believe
it or not, this can actually cause businesses to fail completely.
Identifying Your Target Customers/Market
6
Ponder On Who Will Buy From You
One of the
first steps to formulating a business plan is identifying your target customers. You need to identify select
groups by category. These categories normally
include age bracket, gender, marital status, and such. At times, these categories may even include
special groups such as employment status, nationality,
physical health, vital statistics,
and such. If you
are selling weight-‐
loss products for instance, your target group may include
the following: overweight people, women,
ages 16-‐30,
and such.
7
Device Plans On How To Attract
Your Target Group
Once you
identify your target group, it will be easier to device a marketing and advertisement plan. Simply think of the thing that your target group likes.
Think of what things will attract their attention. If you target group
are children for example, it might
be a good idea to use advertisements that include a lot of playful colors. If your target groups are health-‐conscious
individuals, you might catch their
attention by starting
your sales pitch
with health topics.
8
Know Where
Your Products/Services Will Sell
Finding the
correct location to do business is one of the most crucial parts of business
planning. You may have the best product,
the best employees, and the most amazing list of resources. But if your business
location is wrong,
everything could go wrong. Business
location is particularly important to stores. These may include restaurants and
groceries. Businesses like these ones need to be located to a strategic place.
9
Understand Why Your Target
Customers Want Your Products/Services
This is one of
the questions that you need to answer: What is it about your product that your customers want? Or what
is it about your service offering that
your customers want to avail? By understanding this, you will understand better how to reach your customers. In mobile phone industry for example,
you may ask: What
do the people in your place like in a phone? Do they like cheaper phones, high-‐end phones, or luxury phones? After finding the answer, invest more on products that your
target customers want.
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