.Starting a business and risks go hand-in-hand together. You cannot avoid risks; it will always be with you at every turn. Your goal is to minimize and limit the risks that you are faced in jumpstarting and running a business.
Author and financial motivator Robert Pagliarini in the article “Vital Strategies to Limit Risk and Maximize Success” offers some strategies to help you reduce your risks:
- Keep your day job (at least for now).
- Enlist the support of others and use other people’s talents.
- Negotiate fiercely
- Make small bets depending on your resources (put a little out there and get a little back)
- Limit your liability especially when you are manufacturing your products
- Spread the risk and try to use OPM or other people’s money
Other tips to limit your risks are:
- Limit the amount of personal money that you put into the business
- Research the market and your business plan, but no paralysis by analysis please
An excellent resource to read about limiting risks is this guide from the Institute of Risk Management