By Fernando Berrocal

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As a brand-new or potential startup founder, you may have a different set of questions concerning this specific business ecosystem. Regarding this landscape, you may have questions such as the following in mind: 

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What exactly does the business term "entrepreneurship" imply? 

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In this post, we will go over how successful entrepreneurs take risks–and find success through these “rolls of the dice”–when making business decisions that carry a chance of adverse outcomes. 

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When most individuals consider the working environment of a startup entrepreneur, the idea of “business risk” shines out immediately. That occurs since the failure rate of startups in any part of the world is high, and venturing to become a startup owner can be seen as a risky decision in any context. However, there is also the concept that without risk there is no reward for any organization. That can be expressed in the following phrases of very successful people concerning risk and reward. 

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For example, take the often-used phrase expressed by Wayne Gretzky, the greatest hockey player in history: 

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"You miss 100% of the shots that you don't make yourself take.”

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In another scenario, a phrase purportedly said by the famous founder and owner of Meta (previously known as Facebook), Mark Zuckerberg, states the following: 

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"The biggest danger is not taking any kind of risk". 

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The concept of “risk” has been romanticized in different scenarios in life and is now seen as essential for a fresh concept to succeed as a startup business.

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Many experts in the startup business sector claim that entrepreneurship and business risk are fundamentally linked concepts. As a result, aspiring startup business owners frequently feel pressured to take life-or-death risks even when they cannot afford to fail in this instance. Many entrepreneurs take large, frequently risky jumps since it is believed that taking risks is the major standard to follow in this pro-risk culture. What is the reality to follow? For the great majority of people beginning a business, the bulk of risk is needless. In actuality, the term “risk aversion” ought to be acknowledged and described more broadly as an asset–especially in the high-rolling, fast-paced world of entrepreneurship.

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Five-Step High-Profit Launch Systems

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In this case, the message is obvious, the most successful business people try to eliminate risk before accepting it. A Five-Step High-Profit Launch System helps novice entrepreneurs decide whether an idea will succeed before enormous amounts of money, time, and energy have been lost, lowering risk while creating and launching a new enterprise. Wall Street can suspend all trade if the stock market is falling sharply to prevent catastrophic losses. Entrepreneurs can take similar action. They may go on to another concept and save themselves time, money, and tears by quickly determining whether consumers would pay for the product or service. They can also save investors thousands or even millions of dollars. The five main steps of the Five-Step High-Profit Launch System are as follows:

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• Research, Strategy, and Validation: The fundamental goal of business validation is to demonstrate that there is a commercial market for your concept. After validating that, another important factor relates to how much that market will be willing to pay for it. The primary focus group is the most often used method of validation or product market fit.

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• Gaining an Audience: Finding your target clients and integrating them into the business community is the next stage once the idea has been properly proven. Building an audience before launching is a crucial step for any startup. That occurs because you want to start with a bang and let as many people as possible know about your startup rather than a quiet launch of it where nobody knows what is going on.

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• Audience Engagement and Conversion: In the case of audience engagement, you need to enthuse individuals in addition to identifying possible startup clients. The probability of gaining early business traction is increased by disseminating information throughout your community to make sure that prospective buyers are ready to purchase the product once it releases. 

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On the other hand, when it comes to conversion, this is a crucial time for your startup business– and something you must consider in advance. When prospective consumers convert to actual clients, your business benefits in every possible way, and there you will see its importance. Take notes on what kind of products and/or services the clients prefer from you and your main competition to see how to convert your audience in every possible way.

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• Scaling and Improvement: Once your concept has taken off in the market, you must prepare in advance for the upcoming events. Scaling is all about accelerating your business sales from the first to the last part and laying the groundwork for continued stability and expansion. And improvement requires verifying what is being done in the present time and how that can be improved upon.

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While some business risks may not be fully avoidable and, after all, life is full of danger in every aspect. However, there’s a tremendous difference between taking chances because that’s what you think needs to happen for success and being wise about the risks you take on your route to success. You'll save time, money, and misery by adopting a risk-averse attitude rather than a risky one, whether you're an experienced entrepreneur or launching your first concept.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.