How Risky is it to Start a Business

It is not inherently risky to start your own business.

By definition, to be in business, you must meet a demand with a supply which you have either created or have access to.

That supply is then traded (for money) to those in demand.

So, if you know what supply is in demand, you can assume without risk that you will be able to trade the supply for money once you have created it or accessed it.

The risk comes into play when folks start with the supply, and leave the demand up to question.

This is most common in the technology industry when websites and apps are created that have no real demand (provide no real value).

Validating a business is very important before starting one.

For the sake of completion – this is only one-half of the equation. In addition to starting a business, there is also sustaining a business.

There are an infinite number of inherent challenges associated with sustaining a business. You might have issues with your suppliers, tools breaking, issues with cash flow, issues with employees, etc.

These are not risks, however; these are problems to solve.

 

How Risky is it to Start a Business

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