The Internet has opened up new opportunities and lowered the barriers to entry in almost every industry. But it has also given more entrepreneurs the chance to be bold and take risks. Knowing how to embrace certain risks while avoiding potentially costly ones is integral to maximizing success.
In the business world, we call this risk management. The proper risk management strategy helps you prepare for the unexpected, minimize threats, and counteract negative consequences through proactive decision making that increases your likelihood of experiencing positive results.
As an Internet entrepreneur in 2019 and beyond, you face a unique set of risks. And just as any business needs a risk management strategy, you need to develop your own approach to understanding and neutralizing threats. In particular, you must be aware of the following:
- Lawsuits: As an internet entrepreneur, you don’t have to agree with the litigious nature of today’s consumer marketplace, but you do have to respect it. Business insurance is your best friend.
- Cyber attacks: Hackers prefer to target smaller businesses because they’re more likely to be unprotected and vulnerable to simple attacks. Hackers who victimize your website can wreak havoc on your venture – leaving you with issues like: malware, ransomware, data theft, content hijacking,…
- Stiff competition: What you want is a niche where there’s already some competition, but it’s spread out across a handful of different businesses. This indicates that there’s demand for the product, as well as an opportunity to become one of the market leaders.
- Rip-Off products: The best way to avoid this is by (a) filing for all of the proper trademarks and patents, and (b) creating such a magnetic brand that it’s impossible for another company to come in and take your customers away.
- Social media: In terms of branding and reputation management, today’s online businesses face serious risks at the hands of social media. One ill-worded tweet or poorly timed Facebook post can lead to negative backlash and serious consequences in the court of public opinion.
- Reliable employees: Being able to hire a remote workforce is great, but it doesn’t come without its risks. One of the risks is a lack of reliability and accountability.