In previous posts we have written about how many people love to start their own business. Have you wonder why is that? Well the answer is not the same for everyone but there is a common answer. Most of them who do want to start up a business want to do so, first to change their life style and be successful. And that tells everything. They want to be successful. They ignore the facts, they don’t think about failure. In my opinion that is good. The facts are 60 to 70 percent of start up businesses fail. Not a good feeling, but that why I admire people for taking on a business even though they know the facts.
What are the risks of a start up business?
1 – Failure.
You start with a great passion and keep working hard, long hours. It means a lot to you, and you put all the efforts and the energy in to it. After less than a year your business is struggling. You don’t give up, but keep working hard even all seems your business is failing….Why your business might fail?
- Not good planning. You had a plan on place but can see that clearly is not working. You might try to change. You might try to evaluate your idea and your plan if there is a way.
- Wrong location. You kind a feel it.. There is not enough customers. You still can try hard to get some customers from your competitors. In order to do this you need to consider your approach and strategies. Like you might need to look at pricing of the product as the quality of it.
- Not creating that good relationship with existing customers. You need to evaluate and treat with respect every single customer. Always try to make happy customers them always will come back therefore they’ll have an impact in your business.
2 – Loss of funds.
Failure of your business means you will go bankrupt. It means you lose your funds, your money and investment. All what you can do if that happens is take a break and switch off for sometime.
3 – Getting in debt.
This is another risk that comes with a failure of your business. Many people get business loans from bank or from investors when they start a business. That’s why the risks should be well assessed before you get in debt.
The rewards of a business.
The thoughts of failure never should stop you if you willing to make a success of your life. Succeeding with a business is learning from failure and progressing. Always moving forward. The rewards of a successful business are numerous but I am only going to mention few.
1 – The freedom.
Being your own boss gives you the freedom you might always wanted. You can work when you want. You only think doing the important stuff that requires your attention. So you will have plenty time to do things you love like travelling etc.
2 – A desirable lifestyle.
Building and growing a business is far from easy. Turning it to success takes, money, time, energy, and lots of hard work. But when it happen it does change your life. You can choose the lifestyle you want. You can live your dream.
3 – Leaving a legacy.
Being successful in high levels means you change your life. You change your families life. But more than that you can change people’s in need lives. People that you might never met. It’s a great feeling.
Few days ago was children in need event hosted by BBC. Some £36 million was raised with donations of so many people. Thinking that money will change so many childrens lives is so wonderful.