If you’re planning to create long term success and wealth, then we suggest you go down the road of starting a business. Always keep in mind that there are as many opportunities as there and risks if not more.
Risks in Starting a Business vs. Not Doing It
People typically think that going out and starting a business involves tremendously levels of risk. We can’t really blame them since a lot of official statistics state that out of 10 business startups, 8 would ultimately fail but what people don’t know is that there’s a lot more to the story. For instance, the reasons why businesses fail are not stated and these statistics are not a hundred percent accurate anyway.
Nowadays, more and more people realise that there are bigger risks involved when you hesitate in starting a business compared to actually going for it. Just by practising due diligence and paying close attention to business management, risks of failure are greatly reduced. But if you remain an employee, there won’t be much you can do when your employer goes out of business or they decide that they no longer need your services.
Due Diligence and Risk Management
Due diligence is one of the most effective ways to minimise or at least manage all the risks involved in starting out your very own business. Basically, due diligence demands that you thoroughly educate yourself in understanding all the relevant business risks and decide based on the knowledge and facts presented to you; don’t decide based on what you feel or fear. Sure, even with amazing due diligence, there will always be a little bit of uncertainty at every turn, but these uncertainties will dramatically be reduced to the lowest degree possible.
As we mentioned, due diligence mainly requires you to educate yourself; do research on the field or industry that you want to enter, interview other successful people with businesses similar to what you’re aiming for, read up on publications and journals regarding your field of business interest, divulge in the research opportunities of the internet, inquire about market conditions and so on.
When presented with risk factors, investigate everything about the risk factor, determine a definite level of risk and come up with solutions or preventive measures to minimise the risk. Let’s say that there’s a risk that at least one customer might visit your establishment, fall, get injured and ultimately sue you. Due diligence would ask you to think about purchasing liability insurances in order to minimise the problem and offer a quick solution if ever it occurs. Know about Nicolas Giannakopoulos here!