Risky Business or Risk in Business
Where is your level of Risk?
Everyone wants to make money. Have you ever heard anyone say, nah, not me?
The world stage is set, money is the MAIN way to acquire what you want. There are countless ways to address business risk, lets start with you, first.
You may not be, just you. Meaning… YOU… could mean you and your companion, partner, spouse, friend, child and so on, a group of people. The more involved with people, the complicated it becomes. It is a rarity in groups that everyone is on the same page. I mean, RARITY.
When creating your business profile and plan, you must evaluate what the risk is going to be. What is the trade off between loosing and winning?
You and only you, it is most likely you’re willing to take on more risk. Groups, not so much. Groups that have the same “end in mind” don’t always have the same path, in mind, to get there. The shortest path is always the riskiest path. Groups will often take a longer path, with less risk, to achieve their goals set by the group. It is okay that it takes a longer period of time, as long as the group reaches their goals.
Individual business owners, feel as though they can handle more risk and therefore have no issues taking the shortened path.
What are you willing to let go, without it effecting your life?
There is a trade off. That is what risk is.
Answering the question of reaching out has the potential to cost…something. It can be only marginalized at the business level, however many involve personal assets and it if goes south, you lose everything. Setting up the proper legal documentation is critical to eliminate potential loss of personal assets. If you have leveraged your home mortgage to fund a business, getting with an attorney to separate assets from business will be very important.
There are only a few people who really understand business risk and personal risk. Let me say this though, investments into bitcoin is not a business, it is an investment. It carriers much high risk because you have zero control once your hand lets go of the money. Same goes for other offers such as Foreign Exchange markets, they are investments and not businesses. Please treat them as such.
Investment risk, is the HIGHEST risk. You have very little control and very little input.
Business risk has some controls. It is educated risk by analysis. Risk, yes, but calculated and monitered.
Investment risk is turning your money to someone else who makes all the decisions and action. You hope at the end, you make a profit, but not by your hand.
Investment or business, are they the same thing?
Actually we’re talking about two different types of risk. Investment risk tolerance and business risk tolerance. Please do not get the two mixed up. If you’re in business, then stick to business. You have zero belonging to the investment markets. UNLESS you are filthy rich and have excess cash, NOT associated with working capital, then you can play in the market. But, why would you? I find it interesting that you have a successful business that is moving forward very well, why are you not looking at avenues to expand that operation? Better yet, why not look at another SUPPORT business to feed each other?
Many business owners that have reached a level of success become so dumb with their money, they just throw it away.
Agreed, it is THEIR money, they can do as they wish, please help me see the reasoning behind it! If you’re traveling for personal reasons, then use business money and make a small business trip out of it. There are tons of tax write offs, associated with travel, other assets and so on that will help in taking the edge off of tax responsibility. (Consult your tax adviser) It is not against the law to conduct business and still enjoy yourself. IRS wouldn’t know anyway.
What Risk at Start Up Do You Need To Watch For?
Before you even start making business plans, you have homework to do. This is where you go to your competitors, either online or at their brick and mortar store and start your research. You will need a extensive check lists and balances as to what is going on. Lets start with hours…can you work 7 days a week and 24 hours a day? No? Maybe this is not for you. OH, you say you are willing, but doubt it well ever happen. Okay, your probably right, but I personally have pulled 36 hours working to get something done. In truth it will happen, just not everyday.
Moving on, you would look at inventory, look closely who their suppliers are, how big the building is, traffic flow at various times in morning, noon and night.
The person who starts a business without HOMEWORK completion will fail. It is that simple.
You need to know.
You need to understand.
Not knowing and not understanding leads to business death. “I don’t want to do this” or “I hate this” means…YOU…, my friend are in deep business trouble and the risk just grew 10 times after making that statement. Some realize it after they have been working at it for a few years. They do okay, not super rich, but they HATE IT! It is all they can do to keep things going. IF they are lucky, they can find a buyer and in most cases, it becomes a fire sale.
Watching one client search for these businesses, it was like a cat and mouse game.
When we approached them, they wanted cash upfront. But when proposed of payments over a period of time or nothing, they take it. That is how bad they hate it. Seen it many times and helped an investor acquire 6 businesses in about a 3 year period. All of them were making money and plenty of growth, the owners just hated the hours and commitment.
Risk never ends…
I am not kidding when I say that business owners do a mind shift after being successful for years and years. They come to think, they have overcome it all and the risk is gone. Why is it gone? Because they have it all figured out.
We know that isn’t true.
Look at our recent Pandemic. How many of the failed businesses saw that one coming?
Mmm no one.
It does not excuse them from preparing and then closing doors and letting it all go. GOOD business owners don’t get complacent. They don’t think all is well and live to the fullest. Good business owners realize that a simple needle can be enough to stop this tiny little cog, that usually runs another cog that is associated to the main wheel. That one needle can be death. It can take life and shred it into a million pieces. That is how they feel after they have had to close doors.
Let me remind you, not all mom and pop shops have closed doors. Why is that? Simple, right? They prepared for the risk and were able to take the hit.
YOU need to KNOW this…
Risk never leaves.
It never entertains.
It never goes outside to play ball.
Risk lurks in the back of businesses waiting to strike and destroy.
A business owner not keeping their eye on the risk often get the surprise of their life. Like a Pandemic. Small mom and pop shops all over the USA have closed because of that needle. Their cash reserves were too small, they increased expenses because business went up, they stopped going into the store everyday and blah, blah, blah BLAHHHH!
Having experienced it.
Life was hard, and soon became reality. Risk took me down when I thought it was not even possible. I became complacent and feeling that the tens of thousands of dollars coming in monthly was never going to go away. Wrong.
I learned and will never make the same mistake again.
COVID19 showed its ugly head, but it also showed us how to start a company with very low risk.
Warehouse? Not here.
Employees? Just you.
Business office? Just your home.
Huge potential with very low RISK!
Because of COVID19 people have stayed at home. It seems fitting to offer a business from a home computer. Finding a business that has already gone through all the growing pains and established the wheel of motion is hard to come by these days. Get the plan HERE.
They offer full partnerships and FREE training, my first thought was, could this be true? Sounds to good.
BUT it is. It is true. That is why, I am offering you the book The Iceberg Effect for $7.96 shipping. Go find it at Amazon and yes you’ll get free shipping, but the book is 19.95.
Full partnership is just like a Franchise. Like McDonalds and others, all the work of success has already been done. If I owned a McDonalds, I have to work to take their knowledge and apply it. This is the same. It can be complete, if you want it that way.
What risk level are you at? Tell me what you think. Leave comments below.