Introducing Five Proven Ways To Reduce Risk So Your Business Actually Has A Chance To Succeed!
Since you’ve decided to start your own business or service. You already have some realistic idea of what needs to be consistently done, correct? And the things you can’t currently do or the capital you don’t currently have direct or indirect access to.
Ultimately your long term success or lack thereof will be decided based on how well you or your major competitors can adapt to maximizing your current and future resources or assets, correct? Because it’s not “if” you don’t have enough of the previously mentioned.
Entrepreneur “what” it’s ultimately is going to boil down to is this. How do you systematically reduce risk in your budding entrepreneurial venture spite of not having direct or indirect access to every resource or asset you think you need in order succeed?
Wanna Know How To Reduce Risk And Avoid At Least Three All Too Common Mistakes Aspiring Entrepreneurs Often Make?
First of all entrepreneur. Since you’ve taken the time, invested you extremely hard earned money and you’re typically working, (especially in the very beginning of your entrepreneurial journey) at least 10-14 hour days.
Stop or don’t try to advertise, market or promote your business or service the exact same way an extremely well funded fortune 100 or fortune 500 company would. Say what? Meaning don’t run ads which are somehow magically suppose to build your image or brand awareness to the general public.
Because according to some extremely eye opening recent business survival stats freely shared by mega best selling author, personal development expert and business success strategist Tony Robbins company.
An incredible 50% of all startups on or offline will not make it past their very first year in business. (Do you personally know of anyone whose business or service didn’t make it past their very first year?)
But even more eye opening is the stat which reveals a whopping 80% o aspiring entrepreneurs will have thrown in the towel within five short years of starting their venture.
Because five years in and constantly grinding it out and barely making a go of this can not on be or quickly becoming incredibly frustrating and emotionally draining.
So much much so it makes more economic sense to shut things down, lick your financial and emotional wounds and move on. But even more eye opening is this final extremely eye opening stat.
By year ten a staggering 96% will be toast. That’s correct. Out of 100 typically startups, within ten years of their initial startup date. Only 4% of them will still be around and running their initial business or service.
Entrepreneur Get Caught Up In A Race To The Bottom By Trying To Compete On Price Alone! (That Strategy Simply Doesn’t And Will Not Work!)
Every body loves a good deal and every consumer, (myself definitely included!) wants to save money whenever and wherever we can, agreed? But ladies & gentlemen once you open the door and attempt to go head to head with the big boys and girls strictly on price alone.
At least three not not so good things start to systematically or potentially happen.
1.) First: If it’s strictly a matter of the much larger fish (aka) major competitors spending tens of thousand, millions or tens of millions of dollars in order to price test to “discover’ which of their initial price entry points consistently generate a ton of semi to qualified first time customers.
They may decide to systematically keep their prices at a certain price point in order to drive all of the under funded entrepreneurs out o the market. (It’s literally done all the time by the extremely well funded big boys and girls.)
2.) Two: Next, if they need to they can simply and systematically invest in buying more units and therefore dramatically reduce their initial front end costs. And because you and I definitely won’t be able to even come close to matching their volume.
At some point in the not so distant future you’ll have to bow out.
Watch Your Margins Or You’ll End It On The Short End Of The Stick!
3.) Three: Entrepreneur “if” your initial front end margins are razor thin to being with. (This applies primarily to companies selling physical products.) And a major competitor or competitors has the capital to buy way more physical products than you and I.
And strategically sell them on the initial front end for much lower profit margins than you and I could ever possibly dream of doing. You know “how” that movie ends, right?
The bottom line is so called price wars are a race to the bottom. And 99% of the time the companies or service providers with the deepest pockets and best proven marketing strategies and tactics will ultimately win. (You’ll “discover” the remaining two concepts coming up very shortly in part two, okay?)
So if you really wanna know “how to” reduce risk in your current or future entrepreneurial endeavors. Invest heavily, especially in the beginning on developing new or current skills. It’s definitely one of the best investments you can make.
P.S. Now as is customary during this part of our show. Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!
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Extremely important note: And if by chance, you happen to know any of the lesser known podcasters,(or radio show host)
who also target small business owners, service providers or aspiring startups entrepreneurs etc.
And they’re pro-actively looking for potential guest speakers. Please don’t hesitate to-either- pass their name and contact information directly
to me or vice versa! Thanks!
(Click the link just below, and watch the first video at the top of the page, if you’d like to see the entire 33 minute replay, of a guest podcast on
marketing your small business or service. I Recently appeared on.)
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to “discover” the real secret of the ultimate insiders.)
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