The Calculated Risks of Starting a Business
We associate the term “entrepreneur” with those brave enough to go out on their own, not conform to traditional corporate standards and who come out alive to talk about it.
Traditional corporate standards has many employees unhappy with their current supervisor, pay or some other facet of their job.
Seemingly, there is a direct relationship among how dissatisfied someone is with their current condition at work and the allure of starting a being an entrepreneur.
Though, many stop at the point of imaging themselves as a business owner and never go through with the prospect entrepreneurship due to the risks involved.
This is probably one of the more ironic facts about entrepreneurship and, in general business as no true success can be obtained without taking risks…. calculated risks.
Below, you will find some perimeters to help you calculate whether your leap into entrepreneurship is a calculated risk or deserves a little more thinking before doing.
Testing Out Your Product or Service:
The product or service is the lifeline of your business and from the onset either puts the entrepreneur at an advantage, a level playing field or a disadvantage.
Here are some questions to best help you aim for the 1st of the 3 aforementioned options:
1. How Important is Your Product or Service to the Public?
Businesses that try to create a demand in an industry that currently has no demand nearly always fails.
When it comes to products, most new inventions end up costing the dreamer dearly to the extent that commercials selling various patent software and invention related products / services must include a warning in their ad informing the potential entrepreneur of the risks involved.
If you have an undying love for inventing new things, I strongly recommend that you make it a 2nd business to start, though completely putting it aside until you are successful starting up a 1st business that you both enjoy and that has current market demand.
2. Do You Need Heavy Licensing? How involved is the Government?
How Easily Can You Get Sued?
If you answer some form of “a lot, many, exceeding high,” to the above stay away from the industry.
The above three roadblocks can put you out of business before you even get in.
Capitalism has its advantages and disadvantages. One of the brighter sides of being an entrepreneur in a capitalist country is that you don’t have to consistently be dealing with the government.
Also, if you answer “very” to the last question in the group, remember that you will probably have to shell out a tremendous amount of money in insurance every year.
Sometimes, these expenses can cut so deeply into a person’s bottom-line that the business no longer becomes worthwhile running.
To get a 1st person opinion, you can ask your local doctor as to how pleasant their insurance costs are the next time you have a checkup.