HARSH REALITIES ENTREPRENEURS RARELY EXPECT AND HOW TO OVERCOME THEM

MOST FOUNDERS KNOW ENTREPRENEURSHIP WON’T BE A CAKE WALK, BUT THAT DOESN’T PREPARE THEM FOR THE HARSHER SURPRISES AND PEOPLE) TO INFILTRATE THEIR STARTUP JOURNEY. HEED THESE WARNINGS TO TACKLE THE BUSINESS-BUILDING SHOCKERS YOU DIDN’T SEE COMING.

- Rachel Greenberg

When you begin a new venture, some pitfalls are expected — from a technology learning curve to the challenge of cracking the profitable customer acquisition code. However, it’s often the obstacles you least expected that will sneak up and wreak havoc at your most vulnerable moments. As an entrepreneur who’s experienced all of the below firsthand (sometimes with staggering consequences), I’d urge you to heed my warnings and prepare to face the unexpected, starting with these five harsh realities that may infiltrate your business at a moment’s notice.

1. Your most reliable channel may backfire

I recently almost acquired a company, until I made one distressing discovery: More than 90% of its customers come from one channel, and it’s one they hardly control. This dealbreaker brought me back to a few years prior, when one of my own companies had relied upon the widely touted strategy to triple-down on what’s working.

In theory, it makes sense: If you know one marketing channel generates the highest return, you should go all-in on that avenue to maximize your venture’s success.

In reality, there’s a major problem: Once you rely too heavily on any one thing, person, strategy or platform, you create a giant gaping vulnerability. Your silver bullet could soon become your Achilles heel if the reliable channel suddenly goes away, changes or becomes less reliable.

The answer here is simple: Diversification insulates businesses from devastating vulnerabilities, and even though it may feel counterproductive to invest in lower-ROI activities, it’ll be worth it to build a more robust, defensible venture.