Becoming a business owner can certainly be enticing. You can be your own boss, run things how you want, and have opportunities for personal and financial growth. But there may be a steep learning curve in the beginning. Particularly with small businesses, the business owner often has to wear many hats: manager, accountant and salesperson to name three.
Launching a small business can also be risky. You might have lower sales than expected or face unexpected expenses that you can’t afford.
Before you commit to starting a new company, write a list of business risks that you might face in the first year. You can talk with your potential business partners or other experienced business owners to learn more about their experiences and get some ideas.
Rate the risks as low, medium or high. If the risks are medium or high, they could put your business at risk of failure. Ask yourself, "Is the risk of starting this business worth the reward?"
Your decision can affect your financial well-being, family life and health, so think carefully about what you can do to avoid the risks, or turn a medium risk into a low risk. You can also develop backup plans in case your business doesn’t work out.
If you’re ready to continue, you can start your journey by learning about the steps you’ll need to take to start and run a successful business.