What should all young, first-time entrepreneurs know before they start a business? originally appeared on Quora - the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Before starting a business, young, first-time entrepreneurs should be cognizant of five core risks to their business. Those risks are:
- Founder Risk - Who are your founders? Do they get along? How much stake do they have in the company? Do they have a track record of success? Will your business together be their top priority?
- Product Risk - Do you have a talented, A+ head of engineering? Will they be able to inspire and recruit other A+ engineers?
- Market Risk - What is your total adjustable market? Are you addressing a real problem?
- Competition Risk - How do you plan on differentiating yourself in your space? Is there enough competition to validate the market?
- Sales Execution Risk - Do you have someone on your team who can get others to understand how your product solves their problems, and to trade you money for it?
You don't need strong answers to all those questions starting out -- your definition of what a strong answer is will also refine as your entrepreneurial skills mature. However, what you should know is how you'll get all those strong answers.
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