Cut Down the Risks of Small Business Failure
All right I admit, that's not the most uplifting introduction I've ever read either, but the truth is that most small business start ups do not make it and that fear stops many people from even trying. So why not check out what you can do to reduce the downside if your small business doesn't make it. It could give you a bit more incentive to take your shot.
Now, if you're thinking that to go into business you need to be a risk taker, you're probably right. But no one ever said you have to hurt because you tried. Only those people who will never have the gumption to get up and do it themselves would think like that.
There are three main areas you can downsize your risk and they're Family, financial and emotional I could say a lot about each one but let's see what we can cover now.
To reduce the risks to your own self esteem if your great idea turns into a small business failure, remember that you are not a failure. Maybe the idea was ahead of the curve or you just needed a little more business and marketing experience. Maybe the newer, tougher competitors entered the market and probably you make some mistakes and bad decisions. But YOU are not a failure, until you concede defeat until that point, you are just accumulating experience.
Making sure that your family doesn't suffer if your business fails is important to plan for. Remember, when you're under stress and feeling frustrated the people closest to you will share you pain, even if you refuse to share it with them. When you beat yourself up, they'll hurt too.. But never forget what's really important.
Yes, your family time will suffer when you're burning the midnight oil, but I can promise you there will only be one Kindergarten Christmas concert, one middle school graduation, and one fifth anniversary. The day that your child is too big for you to pick up will come sooner than you think. If you lost these moments in your life because you were "at work" failing will cost more. Don't give up the balance in your life.
How to protect your financials is probably the easiest thing for you to control – Don't over spend! If this is your first business - for heavens sake don't get carried away Look at an internet business as a great way to build a ton of experience without risking an equal ton of money. There are different retailbusiness models where you don't need to pay for inventory. You don't need to spend a fortune marketing your online business because you can learn to do much of the important work yourself. It's a great way to keep a lid on your investment – and your risk- and if you're not willing to stretch yourself enough to learn new skills, you'll never make it. Once you have a little success going for you and have a better feel for what you're doing and how to buy it, you can outsource some of the work, but don't outsource too early in the game.
Starting a small Business is tough. Louise Collins, the author of START UP MISTAKES, learned that all too well. In fact, when she looked back at her first full year running her online business, Louise added up what her mistakes cost her. It came to over $20,000.00.
And that's why she wrote START UP MISTAKES - a look at what NOT to do if you're wondering how to start a small business when you'd rather turn your money into profits - and not lessons.
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