The Risks of Entrepreneurship


 The Risks of Entrepreneurship

Entrepreneurship is a high-risk, high reward lifestyle. Entrepreneurs are often people who have found success in the corporate environment but grow tired of having to work within someone else's limits. They want to take risks, make new mistakes, and build something that they can call their own.

But it doesn't always go according to plan. You may find yourself swamped with debt or running your business into the ground while you’re still just starting out. Or maybe you will close up shop entirely before anyone ever hears of you at all.

The future is unpredictable, but there are some things you can do to reduce the risk of failure and increase the odds of success.

Borrow money from family and friends or your 401k or credit card. This is often a safer and less risky option than taking out loans from private companies. Keep your business name as small as possible by using an informal name for your venture or a name that no one will associate with you as a result of this venture. For example, it would be unwise to choose "Company" as a business name because other people might believe that you already have a company with the same name. Create an LLC if you don't want to pay taxes if you close up shop before paying back all debts. Create a website with a basic content management system such as WordPress (if you're not familiar with this, consider reading the tutorial on setting up WordPress in the first place) and make sure your site is easy to update. Create a list of business contacts who can help you stay in contact and keep your business afloat. Uncover all costs before you start, because you will likely be surprised by some of the expenses that come with starting up a new business. For example, if you decide to take out business loans or credit cards for start-up expenses, it's usually wise to secure these before the official start date of your company so that you don't have any unexpected surprises when you reach the end of those obligations. If you've decided to take out a business loan, make sure that your credit is good. If you've got an MBA or another advanced degree, do some networking with your current contacts. The more people who know about your product and are willing to support it, the better. If your product is unique, talk to as many experts in the field as possible before you start; this way you can find out if it's truly something that people want. Hire someone who has experience with your business if possible. In any case, watch out for legal issues that may arise before and even after you start up the business. First and foremost, no matter what business you start, keeping your business small and simple is the best way to reduce the risk of failure.

In addition to these tips on reducing business risk, there are ways that you can increase your chances of success. Here are just five ways that you can increase the odds of success for your company:

Don’t bet everything on one venture. Even if you’ve identified a need and are sure that you have a unique solution, don’t rely on only one product or service to keep you afloat. Double or triple down on your bets in case something goes wrong with one part of your business plan. For example, you could start with a part-time job and then add in extra steady customers to your existing part-time job, or you could try out a new product or service by offering it at a reduced price. Spread the risk of failure. If you are going to be putting all your eggs in one basket and holding on to your business as if it were your baby, think about how much stress that will put on you if it fails. It might be wise to have another source of income before trying this out. Look up other successful small businesses. For instance, read up online about other small businesses that have been around for years and are still successful today. Get advice from experts in the field. Join online forums where you can talk to people with similar experiences. Become an expert in your field so that others know that your product or service will be a dependable one. Keep up with changing trends and new marketplaces. There are always new products that are coming out that may meet the needs of your target audience and might be more suitable than your own business idea. Build a tribe of believers around you. Let others know what you're doing so that they can put their support behind you, even if it might not seem like it’s going to work out at the time.

The future is yours to create. If you’re willing to take the risk, you might just build yourself the life that you’ve always wanted.


Title: What You Can Do To Reduce The Risk Of A Small Business Failure [INFOGRAPHIC]


Risk and Uncertainty Management in Operations of a Commercial Airline [ARTICLE START]
Risk and uncertainty management in operations of a commercial airline is one of the areas that has to be considered when analyzing the application of risk management techniques to cope with adverse or uncertain events. With the advent of deregulation, increased competition between airlines and increasing number of flights, reliability and safety have become paramount issues that affect adversely on profit as well as service delivery. Further, it is imperative that the risk is calculated by taking into consideration of the future potential losses and not by application of a formula. This can only be done in the case where one knows when such losses are going to occur. The main reason for this is that at certain times, such as during bad weather conditions, there is no prediction of when these events may take place. In this paper, the author will discuss the procedures and methods used by airlines to minimize risk and uncertainty in their operations. Risk Management Processes Basis Risk management process includes both qualitative and quantitative assessments which involve various sources of information. It also includes various types of analysis which involve qualitative analysis (forecast) as well as quantitative analysis (measurable). In addition to this, it involves various techniques of evaluation which include common base rate (CBR), statistical techniques of evaluation, natural logarithms, Monte Carlo simulations and many more. In the risk management processes, it is important to understand the major types of failure which include random failure and systematic failure. In random events, all the possible events are not predictable made the fact that they are due to chance or luck. On the other hand, in systematic failure, the events that happen are strongly determined by one factor. It is important to note that statistical methods such as Monte Carlo simulations can be used in reducing abnormal fluctuations in return on investment.

Conclusion In conclusion, with the advent of deregulation, competitiveness and aggressive marketing strategies adopted by airlines, it is important that they consider risk management as one of their competitive weapons. This will lead to lesser risks and greater return on investment. From a risk management point of view, simulation is more flexible than other techniques such as Monte Carlo simulations as it can be used to evaluate risk in situations that are unforeseeable.[/ARTICLE START]

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