Risks Of Starting Your Own Small Business

Before I get into the details of this article, I first just want to say a big congratulations for making it this far on your journey in becoming an entrepreneur! Even having the guts to start researching about starting your own small business, and seeing the risks that go with it, is a huge step in the right direction. There are so many entrepreneurs that don’t take the time to do enough research beforehand, and therefore they fail in the end.

Doing diligent research before you begin is vital to your success and making sure you are ready for the difficult path that lies ahead of you. Don’t let this bring you down, yes starting your small business can be difficult and hard but the payoffs are truly amazing, I promise you!

The Risks:

So as I mentioned before, there can be many risks when you decide to start your own small business. I will be going through them just so you can ready yourself ahead of time in order to conquer them when they get in your way!

Risk 1: Saying Goodbye to a Steady Paycheque

This one is definitely hard at first, especially if you are becoming an entrepreneur after working a steady paying, 9 to 5 job. When starting your business, you need to know that a risk you are willing to take is not to make money for a little bit of time. You will invest a lot of hours and not see much for it, until a few months or a few years down the line. However, if you believe in what you offer and have a great plan, you can make more money than you would ever make as an employee.

Risk 2: Losing The Money You Put In (Capital)

So many new entrepreneurs decide to invest in their business using their own savings or trying to take out a small loan. Just know that if you are putting in the capital of your company yourself, you do risk losing a substantial amount of money. This is why I always recommend looking for others to also invest in your company so you have a more solid foundation moving forward and are not all liable yourself.

Risk 3: Trusting The People Around You

This is the biggest risk that I think you can take and one that is easy to avoid if you are smart about it. Always surround yourself in your small business with people you trust and bring out the best in you. There are too many people who may try to use you in order to make more money for themselves, or who will leave you high and dry through hard times. Always partner with people who understand you and that you will trust with your life. Trust that they will be there in good times and in bad!

To avoid these risks, you must do your research and more importantly plan ahead when starting your own business. Follow this timeline and I assure you, you will be ready to face these risks head on!