Risk; how much should I take?

So; have you thought about starting up your own business but are in a situation where you feel like you have all the skills and commitment but you are held back. Why? Because over your head hangs the questions that anyone in business will have to come to terms with at some point; What if it all goes wrong?

How risky is starting a business?

When it comes down to it, starting a business can be one of the most rewarding things that you can ever do. You will make mistakes, success is built upon this. Take the risk. Just make sure that you know exactly how much of a risk you are taking.

Using your head to plan ahead

I think it’s fair to say that any successful business owner worth their salt will be in the position that they are in because they will have started with a business plan. Without one of these then your risk is going to be very high. By addressing a business plan you will be able to look at financial prospects but also come across issues that are easier to deal with and adapt on paper than they would be in a real-life scenario.

Something that will affect you, whether you need to run your business from home or even from a rented or owned premise is the stability of your market. How is your chosen industry performing at this time, are your competitors on the rise? Do you have a product or service that can fill that gap or is your strategy to undercut your competitors with better value for a better service? If you can’t answer these questions then you need to re-address your plan.

Incorporating and Integrating Technology

Technology has now put us at a point where you can run a successful enterprise from home. There can be a lot on your mind as a start-up business, but by not making mistakes the first time round you can not only benefit financially but also stand a fighting chance in putting your best foot forward. Running a business from home however is not without its risks but can be more financially beneficial due to a lack of immediate overheads.

Something that has been addressed before is how detrimental it can be to ignore an online presence and focus all attention offline, from a marketing perspective at the very least. However, nowadays people will use the platforms such as twitter as the first port of call when it comes to communication so by being aware of social media channels and how important they are to your company can often be paramount to new, and existing, businesses success.

Basic Risk Assessment Checklist

  • Inventory Insurance – how safe is your product or service?
  • Have you given yourself a brutal financial forecast – what is your exit strategy?
  • Are you legal? – Important but often overlooked.
  • Do you have a growth strategy in place?
  • Do you have both an online and offline marketing strategy in place?
  • Can you identify between a high and low risk client?

Should I take the risk?

When it comes down to it, starting a business can be one of the most rewarding things that you can ever do. You will make mistakes, success is built upon this. Take the risk. Just make sure that you know exactly how much of a risk you are taking.