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Start a Business With as Little Risk as Possible

by Nate (follow)
Business (103)      Advice (10)      article (5)      startup (4)     

Usually when a person thinks about starting a business, first they talk and think about money: how much money is needed for all the paperwork, how much money are they going to invest and how much money will they have to pay for additional fees and business-related services.

The next question is: how much time will it have to pass before they get their money back, and are they even going to get it? These questions are normal for all those planning to start a business, yet one should know that there is a way of starting a business with as little risk as possible. Here are the things you can do to reduce the risks to a minimum.

Do not aim too high

To start with, you have to understand that your business idea does not have to be as large as Google or Facebook in order to make money. If your intentions are to get rich overnight, or the sole purpose of the company is to gain billions of dollars, the chances of succeeding are less than winning a lottery. It is always a smarter choice to go with a company that can develop constant income over time, start small and go big as time passes and you make a name for yourself.

Ignore the glamour and the miss ideas, and focus on the things that are real and can really make you money. Research the market and see what the buyers need and what people are looking for. Once you position your company in such a way that people actually want to do business with you, your billions will come. But again, it takes time and a lot of effort.

Keep your expenses low

In order to reduce the risk factors even further, you have to keep your expenses low. This means no luxurious investments and only work with the necessary. Owning and managing a business can be done for only a couple of dollars per month. You need to make sure that you can sustain your business on a long term; start by hosting your business on any free open source software which is ready to use and at your disposal.

From there, move to a website and pay monthly for hosting. Also, when conducting larger business with short-term partners or partners with whom you have not done business before, it would be wise to insure yourself with surety bonds, for there is always a risk of not getting compensated for various reasons.

If you only pay for these essential things and still manage to conduct your business, even if businesses went to suddenly stagnate, yours could be open indefinitely since your costs would not be more than $10-$50 per month. This is one way of getting rid of your competition, by investing only what you have and keeping your wallet safe for more important things.

Do not quit your job

Stay on your full time job until you have fully developed your business and it has become self-sustained. Only then will you truly be safe to leave your job and focus on your business.
Until that day, all additional income will get you through another month and give you more funds to invest when needed. Do not be one of those that work best under pressure; instead, be smart and keep your full time job, just in case.

Do not be afraid to fail

If your main fear is the rate of failure which some people say can be around 90%, then you will never succeed. Do not focus on the failure, or even think about it. Turn your thoughts on something simple, and start building it up and upon it.
Businesses take time to grow, and every old and boring business can be turned and shaped into a gold mine, only if you have enough time and effort put into it. Think about success and about those 10% chance of success, but do not get carried away by numbers.

Once you get into it, you will soon realize that you are in control of risks, and that you can increase or decrease your own risks when conducting business. Start small and focus on quality rather than quantity, and as the time goes by, your business will evolve into an enterprise.

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