Starting a business is a fantastic opportunity with a vast amount of benefits. Today, there are around 28 million small businesses in the US, and even more micro businesses and sole traders. More people than ever are taking the leap, leaving traditional employment and starting something for themselves. But, even though it’s easier to start a business than it has ever been before, it’s certainly exciting, and for most people, the chance to make money is there, there is always a risk involved. There’s always a chance that your business will fail, and if you’ve done your research, you might already be worried that many small businesses struggle. Let’s weigh up some of those risks, to make sure it’s the right decision for you.
Financial Risk
For most of us, the most significant risk of starting a business is financial. Whether you are investing your own money, or you are applying for automotive shop equipment financing, there’s a risk that if your business doesn’t work, or doesn’t make money soon enough, your personal finances might be affected. Even if you can start your business with relatively little cost, you will be losing income by giving up your employment. Before starting up, make sure you’ve got a plan. Make sure you’ve got enough put aside, and separate from your business finances, to cover your mortgage payments if it takes a while to grow.
A Risk to Your Reputation
You might have spent a long time building a reputation as an employee. You might be known as someone that is hardworking and trustworthy. You might have no trouble securing a reference, and people in your industry might think of you when they need help or a specific skill set. But, when you start a business, you risk giving that up. You might have to start again, building a reputation not just for yourself, but for your business. This can be tough if it doesn’t work out.
A Loss of Employment
Giving up your job always carries risks. If you’ve spent years building up your career from entry-level to a senior position, giving it up can be a significant risk. You might not be able to simply slot back in again if you ever wanted to.
Risks To Your Relationships
Starting a business is tough. You’ll have to commit your focus and time as well as your money. In the early days, you might work very long hours and take very little time off. This can be hard on your loved ones and often, it’s the people with the strongest relationships and support network that build the best businesses.
Losing Your Time
You might think that there’s little risk if you’ve got plenty of money and a comfortable life. But, what about the risk of wasting your time? Imagine committing years of your life to something that doesn’t work. Are you willing to give that time up?
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A Lost Dream
If you’ve always dreamed of starting a particular business, how would you feel if it wasn’t what you expected? Would it be a lost dream? Or would you brush yourself off and try again?