Should an Entrepreneur Take Business Risk?
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When it comes to entrepreneurship, business risk is something you will have to take. In order to start & support your business, you will have to put your existing career, personal finances as well as your mental and emotional health at stake. This may sound a little scary at first, but the fact is that launching a business, managing it perfectly and them turning a profit is no child’s play.
There will be times when you get frustrated, feel that you have reached a dead end and may feel that you can’t go ahead any longer; however if you want to be a businessperson, you have to be prepared for all these things. Along with the inherent business risk, there will be a number of other challenges that come along the way and you will have to learn to deal with them and forge ahead. Take a look at what some aspects of a business risk:
- Abandoning a Steady Paycheck– Even before you start on the path of entrepreneurship, you will have to bid adieu to your job and a steady paycheck. If you have a family to fend for, this decision will have to be taken with care. Not everyone will have the comfort of having a back-up plan of resuming their career in case things don’t go as planned. There are no guarantees in a business and you will have to keep in mind that for the first few months, you won’t have any income coming in
- Capital– While some people sink their own finds into their entrepreneurial venture, if you have a solid business plan, you should try to look for angel investors, VC’s, government grants or personal or bank loans. If you are using your own capital, it is a major business risk ; do so very carefully
- Relying on Cash-Flow– Even when you have a line of credit, it can be difficult to have a regular cash flow. You may find that your business has been profitable for an entire year, but still find yourself struggling with managing day-to-day expenses. Keep a check on all expenditure on a daily or weekly basis
A Well-Planned Business Risk Will Pay Off
These are just a few of the risks that you have to be willing to take when you decide to start a business. Keep an eye on deadlines, ensure that you have efficient employees working for you and keep a tight rein on finances. When you are employing people in key positions, make sure that they are dedicated, honest and they will work shoulder-to-shoulder with you and help you on your path to building a successful venture.
Make smart choices, take the business risk you think you need to take, but be firmly grounded as well. That is the one way to ensure that you don’t lose your footing. At the end of the day, the business risk that you take has to pay off too, doesn’t it?
Employers Resource helps every business at all stages with growth and development. Find out more! Call us today at (800) 559-2350.
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