Owning your own business can have many benefits. You might make more money than if you were an employee, you might be doing something you love, you might be having more free time and flexibility and many other benefits that come with being your own boss.
However the reality is that 9 out of 10 businesses fail.
And if your business fails you could be financially devastated. You could lose a lot of money or go bankrupt and that will set you back years. You will have to go back to working a regular job. And the time you lost you will never get back.
Think about it. Let’s say you borrow $200,000 to start a café and that café fails. You will need to go back to working a regular job and save out of that pay cheque each year to pay off that 200k debt. If you can’t pay off that debt you might lose your house or other assets.
It only takes 1 or 2 fails like this in your lifetime to be financially devastated.
A lot of people start businesses but don’t take the risks into consideration.
Yes starting a business can be good move but how do you do it the smart way?
The answer is to start a LOW RISK BUSINESS
Starting a low risk business means that the business requires low start-up cost or already have a market.
For example we know that there is a market for car detailing and the start-up cost can be at little as a few dollars.
Most of the time a low risk business is a SERVICE BASED BUSINESS.
You could be a plumber, car detailer, book keeper, real estate agent, insurance agent, graphic designer, copywriter, pest control etc.
All these businesses you can start for a under a few thousand dollars.
And the market is already proven. You may have a new idea and it may be a gold mine but it might also flop. Yes these already in demand businesses won’t make you as much money if you work harder and smarter than everyone else you will succeed.
You might make 50k, 100k, 150k and maybe 200k+ a year.
Now think if you do what most people do and start a high risk business like a café, restaurant, building company, shop etc.
These businesses require a shop, office with lots of inventory, staff and much other cost.
You will easily have to spend 100k just to set up a business like this.
Ok guys so I hope now you get the idea. It’s great if you want to start your own business but do it the smart way.
Choose an existing service, preferably one you already have skill in or enjoy (or even an innovative one if you think it’s a gold mine and has a low start-up cost) and start the business.
The beauty of a business like this is you can start it while you work your regular job. And if it flops. You will be fine J
Good luck guys and for more information on this check out Will Freemans article and video on this.
(The advice in this article is general only. I am not formally trained to offer business advice. Before making a business decision you should seek the advice of a trained professional)