Entrepreneur Secrets: The Biggest Threat To Your Business

As an entrepreneur, you want to ensure your business is in good health. By this I mean, you want to guarantee that everything in your company is going well. You’re making a profit, your staff are happy, and you’re seeing plenty of customers.

However, there are many things that come along and try to upset the balance of business life. These things will pose a threat to your company, and make your life very difficult. You might think I’m about to reveal all of the threats to your business, but I’m not.

Instead, I’m going to talk about the biggest threat of all. I’ll be discussing the one thing that all entrepreneurs need to be aware of; big businesses. That’s right; a big business is the biggest threat to a small startup. Why is this? Well, all will be revealed if you carry on reading:

Big Businesses Can Kill Your Company

Perhaps one of the most worrying things a big business can do is kill your company. That’s right; they can do things that leave you in a tough place, fighting for survival. The main way they do this is through lawsuits. If a big businesses see an up and coming small startup doing well, they may see it as a threat. So, they look for ways they can sue you, and damage your business. As an example, this interview with Hampton Creek notes how Unilever tried to sue a much smaller business. They don’t do this if they aren’t threatened by you. And, much like a shark, when threatened, big businesses attack. The best way to avoid this is to be very careful with your approach. Ensure you aren’t doing things that infringe any copyright laws, etc.

Big Businesses Take All Your Customers

Another thing that big companies will do is swoop in and take your customers. There have been endless examples of this happening in small communities. A local business person opens a small business in their town. It becomes successful, and some similar small businesses open as a result. There’s a friendly competitive nature, and business is booming. Then, a big company spots that something is popular in this town. So, they plonk a nationally recognised store down and swoop up all your customers. They can sell more products and have more money to advertise their business. You don’t stand a chance, and your customer base will slowly whittle away.

Big Businesses Can Buy You Out

Sometimes, there are cases where a big business buys a small one. Usually, this is because it’s threatening them, and they have to take action. They can’t take the business down using other means, so resort to buying it out. As an entrepreneur, you may think this is a good thing. Sure, you get lots of money, but you lose your business. Often, they ask for a majority share, and all of your hard work is handed over. Then, they might close the company down completely, so your legacy is gone.

You can see how threatening big companies can be. You must be wary of them, and can’t let them ruin your dreams.