By 
Stéphane Degonde is the author of “J’ose entreprendre ! Créer et diriger son entreprise : 100 risques à éviter pour réussir” (I Dare to Undertake! Create and Manage Your Business: 100 Risks to Avoid for Success). Why this book? Following the bankruptcy of his own company, Stéphane sought to analyze the mistakes he had made, which might seem insignificant when viewed in isolation but had become perilous for the business due to their accumulation. He compiled a lengthy list of such risks, which he further expanded by interviewing fifty-one entrepreneurs.
Drawing on his experience and perspective, Stéphane sheds light on 6 risks inherent to starting and growing a business, offering some advice on how to better understand and try to mitigate them.
1. The wrong choice of a business partner
Starting a business with multiple founders means bringing together different profiles, which likely means different perspectives on entrepreneurship and risk-taking. Entrepreneurship doesn’t necessarily mean the same thing to everyone. While finding a partner with complementary skills is essential, make sure there’s also a good alignment in terms of values, ambitions, personal circumstances, and a shared desire to transform the company. Don’t rely solely on complementary expertise. The alignment of personalities and aspirations is equally, if not more, important. Take the time to get to know each other, and ideally, work together before becoming partners to quickly address the real-life challenges of running a business. Personalities often reveal themselves in adversity.
2. The sacrificial logic
Entrepreneurs have a tendency to pour their heart and soul into building their business, often sacrificing weekends and more for its success. However, at what cost? Does a higher level of sacrifice make for a better success story? This logic is deeply ingrained in the minds of entrepreneurs who don’t take it easy. Fatigue contributes to professional risks and disrupts personal balance. Uncertain health and a weakened mental state can seriously compromise business development. Engage in sports, spend time outdoors, stay connected with your family and friends, accept downtime doing nothing – these will make you stronger and better equipped to face daily challenges.
3. Patrimonial risks
Staying married under the regime of universal community, not taking out unemployment insurance, using all your savings to finance your business’s development and make up for a lack of salary, and accepting personal guarantees for the company’s bank loans are just a few examples of ways to expose your personal assets to business risks, potentially losing the ability to bounce back in case of failure. Entrepreneurship offers freedom, but you can permanently lose that freedom by exposing yourself excessively.
4. The immediate search for fundraising
Many entrepreneurs start a business thinking “fundraising” before “customers.” This is a massive mistake! Your first investor is your customer. They give credence to the company’s value proposition, validate the business model, and serve as a reference to attract investors. By focusing on your customers, you put yourself in the best position to seek investors and succeed in your future fundraising.
5. Team management
Entrepreneurs often misinterpret the signals they unconsciously send to their employees. When the first challenges arise in the company, the leader’s behavior changes: they isolate themselves to make calls, close the door for meetings, become less accessible and open, show signs of fatigue and stress not seen before. These may seem like minor details but can trigger wild rumors, potentially causing anxiety and demoralizing employees. To avoid these misinterpretations, observe, listen, communicate, talk—in other words, stay connected to your teams, even in the most challenging situations, as fear and demotivation among employees multiply risks.
6. Relying on your clients’ growth
When you base your business’s development on your clients’ business risks, you’re essentially making a bet and playing a high-stakes game. It’s like saying, “I’ll succeed if they do.” This gamble might involve putting all your resources into young, innovative companies launching new products. They lack a track record, recurring activity, no guarantees of finding their market, and possibly not enough resources to pay you. Betting on these clients without any guarantee of success turns you into a risk-taker without any equity participation in these companies. This is not what you do. Adopt a more cautious approach: focus on mature businesses to secure your development. You’ll have plenty of opportunities to take risks once you’re more financially secure.
