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14 Startup Risks
Entrepreneurs Should Consider
When Launching their Startup
© 2019, Rashid Aliyev www.RashidAliyev.com
Capability Risk
The risk that the startup is unable to scale its capability on a timely
basis and at levels required.
© 2019, Rashid Aliyev www.RashidAliyev.com
Design Risk
The risk that the product or service design does not meet the required
performance standard.
© 2019, Rashid Aliyev www.RashidAliyev.com
Development Risk
The risk that development of the product or service is not completed
on time, within budget or to defined specifications.
© 2019, Rashid Aliyev www.RashidAliyev.com
Economic Risk
The risk that the company’s success is sensitive to external economic
factors.
© 2019, Rashid Aliyev www.RashidAliyev.com
Economic Life Risk
The risk that the product or services useful life in the marketplace is
shorter than originally anticipated or projected.
© 2019, Rashid Aliyev www.RashidAliyev.com
Funding Risk
The risk that funding will not be available at a level or timing required
for the startup to succeed.
© 2019, Rashid Aliyev www.RashidAliyev.com
Legislative and Policy Risk
(a.k.a. “Regulatory Risk”) The risk that legislative and policy changes
will result in higher costs to the startup.
© 2019, Rashid Aliyev www.RashidAliyev.com
Maintenance Risk
The risk that maintaining the company’s assets at appropriate levels
will cost more than anticipated.
© 2019, Rashid Aliyev www.RashidAliyev.com
Management Risk
The risk that the management team lacks the skillsets and experience
to execute the startups’ business plan.
© 2019, Rashid Aliyev www.RashidAliyev.com
Operations Risk
The risk that operating costs are greater than budgeted, or that the
service cannot be provided at the projected costs.
© 2019, Rashid Aliyev www.RashidAliyev.com
Procurement Risk
The risk relating to the ability of the startup to procure quantities and
pricing of required scarce resources.
© 2019, Rashid Aliyev www.RashidAliyev.com
Research Risk
The risk that the quality of the initial research upon which key company
assumptions were based was flawed in an impactful way.
© 2019, Rashid Aliyev www.RashidAliyev.com
Technology Risk
The risk that less than optimal technology is developed or utilized or
that a competitor leapfrogs the startup’s technology.
© 2019, Rashid Aliyev www.RashidAliyev.com
Volume / Demand Risk
The risk that the actual market’s demand for the product or service will
not yield the projected sales volumes.
© 2019, Rashid Aliyev www.RashidAliyev.com
Questions?
© 2019, Rashid Aliyev www.RashidAliyev.com
mail@rashidaliyev.com

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14 startup risks

  • 1. 14 Startup Risks Entrepreneurs Should Consider When Launching their Startup © 2019, Rashid Aliyev www.RashidAliyev.com
  • 2. Capability Risk The risk that the startup is unable to scale its capability on a timely basis and at levels required. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 3. Design Risk The risk that the product or service design does not meet the required performance standard. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 4. Development Risk The risk that development of the product or service is not completed on time, within budget or to defined specifications. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 5. Economic Risk The risk that the company’s success is sensitive to external economic factors. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 6. Economic Life Risk The risk that the product or services useful life in the marketplace is shorter than originally anticipated or projected. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 7. Funding Risk The risk that funding will not be available at a level or timing required for the startup to succeed. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 8. Legislative and Policy Risk (a.k.a. “Regulatory Risk”) The risk that legislative and policy changes will result in higher costs to the startup. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 9. Maintenance Risk The risk that maintaining the company’s assets at appropriate levels will cost more than anticipated. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 10. Management Risk The risk that the management team lacks the skillsets and experience to execute the startups’ business plan. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 11. Operations Risk The risk that operating costs are greater than budgeted, or that the service cannot be provided at the projected costs. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 12. Procurement Risk The risk relating to the ability of the startup to procure quantities and pricing of required scarce resources. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 13. Research Risk The risk that the quality of the initial research upon which key company assumptions were based was flawed in an impactful way. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 14. Technology Risk The risk that less than optimal technology is developed or utilized or that a competitor leapfrogs the startup’s technology. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 15. Volume / Demand Risk The risk that the actual market’s demand for the product or service will not yield the projected sales volumes. © 2019, Rashid Aliyev www.RashidAliyev.com
  • 16. Questions? © 2019, Rashid Aliyev www.RashidAliyev.com mail@rashidaliyev.com