What risk do entrepreneurs take?

Self-employment risk - these 10 sources of danger could be hot

Employees who want to become self-employed leave the nest they have made: they say goodbye to a regular income, vacation and Christmas bonus and dare the adventure of independence. In addition to the many reasons to indulge in independent work, today we are looking at the downsides:

From accounting, acquisition, sales to product maintenance or the level of knowledge of your performance, you are now your own boss and juggle all areas of the company with just two hands. That can get you upset, like the insolvent entrepreneurs of 2014, 71% of whom are bankrupt due to management errors.

What dangers lurk behind the decision to be your own boss? I have collected the greatest risks for self-employed people for you.

10 sources of danger related to the "risk of self-employment"

1. Administration / accounting

Should I do the bookkeeping myself? We have devoted ourselves to this question in detail in the article: Do your own accounting: yes or no. Sorting the documents properly, paying the advance VAT return to those entitled to input tax deduction, processing the annual financial statements at the end of the year and handing over the tax return to the tax office - all of this is done in this area.

The most common stumbling blocks here are ignorance of where and how you can save taxes - and dig deeper into your pocket than necessary, not being prepared for additional payments of the income tax return or missing deadlines when the tax authorities mercilessly ask for cash. In addition, a senselessly bloated administration clogs the smooth course of business.

2. The acquisition

If you are not the owner of the Salzburg Mozartkugelshop in the city center and you are sure to have pass-through customers who are eager to buy, it is important to acquire new customers as long as you are doing well! There is a great risk when the self-employed are only dependent on one customer. First, the suspicion of bogus self-employment could arise and, second, there would be a complete lack of sales if the “one-and-only” customer were no longer available. The broader you are with your customers, the more robustly your company can withstand changes - and the better you sleep.

3. The social security

The social insurance for the self-employed is very courteous at the beginning: the amounts for start-ups are reduced. However, after the third year of self-employment, the SVA takes the amounts back and quite a few did not survive the "darn third year".

4. Dangers from the World Wide Web

More than a third of cyber attacks target SMEs and EPCs. Such a digital attack is not only expensive (on average $ 38,000) - it also brings everyday business to a standstill. Read here how you can protect your company from hackers.

5. Legal Aspects

All inventions, brands, domain names and patents should be legally parked on the safe side - so that you can rely on your idea and the associated framework conditions reliably and legally and eliminate the risk of ideas being stolen.

6. Wasting time

The work-life balance of the self-employed quickly gets into imbalance: It is not for nothing that they say “yourself” and “constantly”. Especially at the beginning there is a lack of routine and a lot of time is wasted on useless and unstructured things. Knowledge of efficient time management and apps that make life easier for the self-employed reduce the effort and free up time for the essentials.

7. The distribution

According to a profile report, young entrepreneurs often and unconsciously neglect the area of ​​sales:

“With all the enthusiasm for one's own product or new service, people tend to forget how customers can be reached in the first place. The establishment of a sales organization and the development of the right sales strategy are the be-all and end-all for young companies. "

... according to profile editor Robert Prazak in his report.

8. Health

Illnesses also pose a high risk for entrepreneurs. While you can temporarily organize a replacement worker with a normal flu, serious illnesses usually mean the end of a business, so the KSV survey also named illness as a major reason for company bankruptcies.

9. Cash

... is above all THE problem for startups, namely when a financial injection is urgently needed in times of standstill. Or even with regular companies that wait in vain for the outstanding claims of customers unwilling to pay. Unfortunately, no cash - no business is the motto and then the motto is: Checking out subsidies and financing options as well as engaging a debt collection agency.

10. The co-founders

23% of the failed startups cited problems within the team as the reason for their end. According to an interview at futurezone.at, business angel Michael Altrichter also sees the right team as the key to success in addition to a unique idea.

In your opinion, which risk should not be underestimated? We are looking forward to your comments!

Read on now: 5 reasons why startups fail