The following is a guest post from Tim, a finance blogger who believes that a person can become rich with a rich mindset. More than financial freedom, he believes in changing the world by first changing himself before others.
What are the risks in business and what to do about them? Entrepreneurship is not for the faint of heart. While I am sharing these with you, these should not intimidate or stop you, but rather prepare you for possible outcomes. Like Sun Tzu said in his Art of War, “know yourself and know your enemy and you need not worry about the outcome of a hundred battles”.
Before you go into uncharted waters, you might want to ask yourself if you have what it takes to run a successful business. I think that whether you can or not only depends on whether you can answer “yes” to all of the points below.
Possibility of Failure – The number one risk in business is definitely the possibility that your business will fail. Is it something that we can do nothing about? Absolutely not. There are ways to reduce the risk of failure and that is by equipping ourselves with as much knowledge as we can, and to make sure that we are passionate about the business that we are getting ourselves into.
Unpredictable Business Climate – Experience of course would help tell you what could happen next. However, for us rookies, this is one of our handicaps. There are times when your business will have a roller coaster ride, and what do you do when your income seems to landslide? Would your emotion also get a ride? Remember that financial decisions should not be made based on emotions, so be prepared as the market does often get mood swings.
More Responsibilities – Contrary to popular belief, having a business actually means more and bigger responsibilities. You will not be dealing with only one boss like you probably have in your job. You will actually have a lot more bosses as your customers grow in number! However, with proper delegation and careful planning, you can rid yourself of some responsibilities in exchange for a portion of your income without depriving yourself of the technical work that you love to do. It should be worth the time since you’ll have more time to think on how to grow your business rather than working in it. After all, as a business owner, growing your business is your primary responsibility.
Long Hours of Work – Contrary to popular belief, starting a start up takes a lot of hard work. They say that the start up phase is the most productive phase of a business. That also means that during the first few years of your business, you will have less sleep and work longer hours. This is why I stressed above why it is important that you’re passionate about your line of business. If you enter into a business that you don’t like, you will not work hard enough and sooner or later, you will quit and your motivation will die along with your business.
Crystal’s Questions: I don’t know whether you need more of a left or right brain to successfully run your own business, but whichever it is, I think I have it. Running all of my blogs is a joy and an addiction. Whether your dream is recycling aluminum cans or running a dog kennel, it is doable with a little finesse. Have you ever started your own business? What were some of the risks you took on?
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!). I even have all of my favorite tools on a resource page - I hope they help you too. Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!