Novice Entrepreneurs: What Could Go Wrong?

If you see yourself as a budding Elon Musk or Steve Jobs, you’re no doubt brimming with confidence and eager to take on the world. The world of commerce is unforgiving and there are so many variables, many outside of your control and while no one likes a pessimist, we’re going to play devil’s advocate and throw a few curveballs your way.

• Zero bank balance – You might be thinking this is the kind of thing that happens to the ill-prepared; all it takes is a few big invoices to go unpaid – you have wages to pay suppliers to clear and then you have your considerable running costs. One of your workers damaged a client’s BMW and now he’s suing! A company truck is stolen and thousands of dollars’ worth of tools and equipment have vanished, the list is long. It is always smart to have a chunk of emergency money stashed away for times like this.
• Data hack – Imagine all of your client financial data being hacked! The embarrassment of having to inform your clients of this is nothing compared to your loss of reputation. Talk to a leading IT support company in Dallas and they can protect your data 24/7. We rarely hear about the small businesses that are victims of cyber-crime, as this is not publicized; the FBI have an entire department dedicated to combating cybercrime, which is more prevalent than you might think.
• Lawsuit – There are a million and one reasons why you might be on the receiving end of a lawsuit; faulty work, an accident or even a claim of defamation; you can take out insurance to cover legal costs if you are served with a lawsuit and we recommend that you do that. You received a huge order, which you managed to complete, yet the customer is being awkward and refuses to settle the invoice, worse than that, they start litigation proceedings for compensation. These things can happen and the right insurance protects you. Click here for reasons you need management consulting.
• Marketing doesn’t click – Without customers, you have no revenue or income and whether a poor marketing plan or none at all, it is easy to fall by the wayside in this highly competitive business world. Enlist the services of a local SEO agency and make your mark on the world.
• Pandemic – This one turned out to be reality; here in the US, many SMEs fell at the first fence when the lockdowns started and there doesn’t seem to be an end in sight. This is a classic example of a variable you can’t control and sadly, this saw the end of many businesses.

We don’t want you to be filled with doom and gloom; all of the above (well, almost all) can be prevented or at least covered with the right insurance policies. If you have a great business idea and a plan of action, setting up your own business has never been easier.