Reduce the risk of starting a business

Website design By BotEap.comMost people consider starting their own business to be one of the riskiest ventures possible. Of course, most people are not entrepreneurs. True entrepreneurs know that successful startups are all about controlling and managing risk. Their entire perspective revolves around doing whatever it takes to identify threats and obstacles and finding your way around, over, or through them.

Website design By BotEap.comThe risks perceived by non-entrepreneurs cover four basic areas: financial, career, personal brand (ego) and lifestyle. Financial risk is the obvious concern. They worry that a startup’s failure will land them straight in bankruptcy court. Of course, there are many ways to protect yourself and your personal assets… keeping your business and personal finances separate is just common sense.

Website design By BotEap.comThe risk of career and personal brand also causes concern. People fear that if they go out on their own and fail, they will lose traction on their previous career path and will be known as failures. In fact, if you’ve built a strong reputation and good networking relationships, getting back into the workforce won’t be that hard (except once you work for yourself, it’s very hard to report to someone else!). And those who consider you a failure because your startup failed are the type of people who cut others out just to feel better about themselves. Most people, especially those close to you, will consider you a hero for trying!

Website design By BotEap.comIdeas about lifestyle risk are generally pretty accurate. Startups occupy all your thoughts and most of your time. You probably won’t see much of your family and friends during the early stages, and when you do, you probably won’t be the best company (unless they want to talk about your business). You’ll likely be a walking ball of stress until your business gets off the ground, and chances are you and your family will be enjoying ramen noodles at every meal for a few months. But all those lifestyle changes pay off once your business gets off the ground. As our favorite quote says, “Entrepreneurs are people who are willing to live like most won’t in order to live like most can’t!”

Website design By BotEap.comThere are a number of specific actions that a first-time entrepreneur can take to mitigate these risks into something manageable, if not imperceptible. First, take the time to really plan your business idea. Dig into the details of every aspect of your business, drill down, and find better, faster, and smarter ways to get the job done. Second, be realistic about the financial repercussions of going out alone. If you start a business without working capital, you will be broke during the early stages. If you commit all your personal resources to the effort, you are putting them all in danger. If you don’t learn how to manage finances, both personal and business, you will have a hard time finding success in any area.

Website design By BotEap.comThird and last, learn all you can about business fundamentals and the details of what you want to do. Striking a balance between actual operations and the business of running a business is a critical, but often overlooked, need to control risk and find the success you seek.

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