How to minimize the risk when you start your own business..

Most people believe that become a business owner is risky than people who get their income (salary) regularly. For some reason, I agreed with this opinion, you’ll get paid if your business is running well and able to generate income. In the other hand maybe you’ll lose all of your money when you get into bankruptcy.

But today, regular income such as salary, not automatically make us safer, more comfortable, because there is still a risk that you’ll lose your job, from company factor, or even from yourself. Not now anymore, today more people realized that if you want to get more salary and passive income you have to take that risk. High earning is equal to the risk, there’s no shortcut.

You can minimize those risky failure, in other words you take the predictable risk

How can you predict the risk? Well, there is a simple way for you, just take a blank paper, divide it into 2 columns. In the first column you can write about benefits and profit you’ll receive if you decide to start your own business. In the other column, write about every risk you possible have if you start your business. Then you’ll see the big picture about starting up a business.

I’ll show you 3 simple ways to minimize the risk loosing all of your money.

  1. Buy a franchise business

Franchising offers franchisees the advantage of starting up a new business quickly based on a proven trademark and formula of doing business, as opposed to having to build a new business and brand from scratch (often in the face of aggressive competition from franchise operators). A well run franchise would offer a turnkey business: from site selection to lease negotiation, training, mentoring and ongoing support as well as statutory requirements and troubleshooting.

  1. You can use other people’s money (OPM)

When you start your business, there is an option about your starting up cost. You have to find resources to get your working capital. If you have enough money for start up cost, you have to make a good and detailed cash flow to make your money safe. But if you don’t have enough money to starting up your business, there’s still an option, you can use other people’s money (OPM). But you still have to make a great business plan and find someone (Investor) to cooperate with.

  1. Start with a good business plan

A good business plan follows generally accepted guidelines for both form and content. There are three primary parts to a business plan:

· The first is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.

· The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on. Here, you also describe the competition and how you'll position yourself to beat it.

· Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses. This part may require help from your accountant and a good spreadsheet software program.

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