Managing start-ups in Unregulated Markets

Abstract

In these times where many new inventions and technologies are erupting, many start-ups will find themselves in a place, where they are entering untouched, untested or unreculated markets. For these start-ups it is especially important to manage the project in respect to time and money[1], in order to ensure that all resources are allocated correctly.

This article will examine what project management approaches are most appropiate when dealing with products that lie outside the normal legilastions and regulations. Furthermore, if the invistigation finds that no approach is fits this type of start-up, reflection on a hybrid model will be made.

Managing risks in start-ups

Starts-ups are very fragile, and it can often be hard to identify what risks are important, because the field is unknown to entrepreneurs. This means that planning for risk is essential for any start-up in any industry. There are various methods for this, and often start-ups will start with a SWOT analysis. SWOT(strengths, weaknesses, opportunities threats), will allow the start-up to identify, which threats that are most present within their area. This will give the startup an idea of which risk are out there, however SWOT is often conducted as key words, which can make it harder for the start-ups to find solution or risk reduction techniques for these risks.

To make a SWOT more tangible, a start-up should follow the it with a PESTEL (Political, Economic, Social, Technological, Environmental, Legal). This will allow the start-ups to detail the key-words from the threats and find which the reasons - if its political decision, if it because impacts the society negatively or is it because your product/service is borderline illegal. PESTEL ensure that the risk associated with the project are tangible. For example if the start-up has created a service that breaks the law, the PESTEL must include exactly which chapter, paragrah, line and law that these rules came from.

Managing risks projects in unregulated market

Unknowns, Skeptism from society/partners, What rules to follow

Example – Cryptocurrency

Cryptoexchange (Binance), expecting regulation, headquarters in 3 countries, fail-safe project management approach