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Is Starting Your Own Business Worth The Risk?

By Edited Aug 13, 2015 1 1

Want to know about small business startup?

Each year more than 500.000 new businesses are formed in the United States alone, but according to the SBA over 50% fail during the first five years.

Starting your own business is, without a doubt, a risk, but in some cases it can be a risk well worth taking. Whether starting a business is worth the risk will depend on your attitude to risk, and its chances of success.

Yes, It's Worth The Risk If…

Ready to start an st home business?

Setting up your own home based business is worth the risk if you can sincerely answer yes to the following questions:

  • You have a clear business idea and have written a business plan

  • You have researched the competition and estimated your market share

  • You can sustain yourself for the next 3 to 6 months

  • You don't get stressed due to lack of financial stability

  • You have other ideas to make money in case you need to supplement your income while on start-up phase.

  • You have assessed your strengths and know how to minimise your weaknesses.

  • You are independent and like organising your own work to run own business


Better Wait It if…
If you are starting a business but can identify yourself with too many of the following assertions, putting it on hold or rethinking your strategy may be a better idea.

  • You have absolutely no experience running a business, and have never meet somebody who does for more than a passing greeting.

  • You have a feeling your idea will work, but haven't had time to sit down and do numbers.

  • You just quit your job in anger at your manager and want to get back to him with your success

  • You like working on a team, under strong management

  • The idea of selling scares you. You prefer working away from clients and the public.

  • You want to prove to your friends and family that you were right and your business idea has potential.

  • You get worried if you don't know when your next paycheck will arrive. Working on commission scares you.

  • You don't have savings and are unsure about how to get money to start your business.

    Money to start your business


Getting started

Starting a small business is no small feat. The first months will be without a doubt a trial, both of your personality and your skills as an entrepreneur. Until you are established and your business is running like clockwork you may find that not knowing if you'll be able to pay the bills or close a deal is way too stressful.

Careful planning and research and a good business plan can help, but ultimately you need to be prepared to call it quits or change your strategy if it doesn't seem to work.

Manage Risks

Planning for new business success
If you are unsure about the risk of starting a small business being worth it the best thing you can do is reduce that risk as much as possible.

Create a business plan and estimate your business sales and costs for the next two year, find people who can help you with things such as sales if you aren't good at them and create a support network that can help you bring your idea to success.

You can also consider teaming up with somebody more experienced that can help you learn the ropes and asking for advice and mentoring at your local business association or chamber of commerce. Being prepared will reduce the risks you need to take to start a new business, and will also help you deal with them better.



Oct 17, 2011 9:43pm
This is a nice recap. Enjoy reading both the pros and the cons. It's always nice to read these type of articles which highlight key considerations like these.
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