If you are planning to open a business and willing to take risk of selling Roomba S9 vs i7, then right there, we want to congratulate you. Not everyone has the courage to open a business, especially in today’s time. There are a lot of entrepreneurs who are risking everything that they have when planning to launch a business.

As for entrepreneurs, the monthly income is not fixed. This is element is variable depending on their month’s performance. Aside from the fact that they have to be effective in running their business, let us not forget that they have to juggle between the fact that they have to spend time with their family. So specifically in this post, we will be focusing on the risks that an investor and entrepreneur must assess before they launch their business.

Financial Risk

Being an entrepreneur, funds will play a critical role in launching your business either you get it in form of your own savings, funds from family or by taking loans from investors. The founder will be putting their blood and sweat to make it work. Any new business must have a strong financial plan within overall business plan that shows the income project, expected return for investors and how much cash is needed to breakeven.

Not being able to plan things accurately may mean that the entrepreneur is risking bankruptcy and as for the investors, the risks of not getting anything.

Strategic Risk

It is without a doubt that investors will be pleased and impressed with a sound and well-thought business plan. On the other hand, strategies can eventually become outdated due to the fast-paced environment and dynamic world we live today. Market changes or business environment means that the strategy you’ve chosen is wrong and a company may have a hard time reaching its key performance indicators and benchmarks.

Technology Risk

Let us face the fact that there are new technology being developed and introduced in the market. Some changes are called as disruptive or paradigm shift technologies. In an effort to be competitive, any new company in the market should invest in new processes and systems which may significantly impact the bottom line.