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12 / June / 2020 : 13-06

Risks to Consider Before Starting Your Own Business


Starting a business can be an exciting, but also risky venture. While the rewards can be great, it's important to consider and mitigate the potential risks to increase your chances of success. Here are some of the key risks to consider when starting a business:

Financial risk: The biggest risk when starting a business is financial instability. Many businesses fail due to lack of funding, poor financial planning, or unexpected expenses. Be prepared for the financial ups and downs of starting a business by having a solid business plan, budget, and contingency plan in place.


Market risk: Researching the market, competition, and target audience is crucial to avoid falling into a crowded or declining market. Make sure there is a demand for your product or service before starting your business.

Legal risk: There are many legal requirements when starting a business, such as registering your business, obtaining necessary licenses and permits, and following labor and tax laws. Ensure that you are fully informed of the legal obligations and obligations of your business to minimize legal risks.

Reputational risk: The reputation of your business can be severely damaged by negative reviews, complaints, or scandals. Ensure that you have a strong brand image and reputation management plan in place to protect your business from negative publicity.


Operational risk: Starting a business requires strong operational skills to ensure that day-to-day operations run smoothly. It's important to have a clear understanding of the tasks involved in running a business, as well as the skills and resources needed to execute them.

Starting a business involves risk, but with proper planning and preparation, these risks can be minimized. It's important to do your research, seek advice from experts, and have contingency plans in place to ensure the success of your business.
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Published on 12 / June / 2020 : 13-06
Published by Liana Aloyan

Journalist, columnist. Liana studies at the Faculty of Russian Philology of Khachatur Abovyan State University. She has been working at Yelaket (Yelaket.am) news agency since 2019 as a journalist and columnist. Writes articles about business and marketing. Liana is a member of "Media association" since 2020.

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