What's the Real Risk When You Start a Business?

13 May, 2016

A third of British people want to start a business or have already started their own business at some point, according to a recent YouGov survey commissioned by Intuit. However, many prospective entrepreneurs have put off their decision due to fears they have and end up delaying their dream to start a business. 
The results of the research show that while many people in the UK would like to start a business, the recession had a damaging effect on entrepreneurial confidence. Only 14% believe that now is a better time to start a business than a year ago. Furthermore, 40% of those that do want to set up their own business blame the recession for delaying their plans even though that was some time ago.
The ‘risk’ factor that people often raise when they are talking about starting a business is deeply misunderstood and here is why: if you were to start a business there is no doubt that the learning curve is much greater than most would anticipate and can often become overwhelming. You underestimate things and before you know it your have lost control. Like everything though the risk can be off-set with preparation and information. For example, I would recommend to anyone who wants to start a business that first and foremost, whether you ‘like it’ or not, you should put yourself on a business finance course. You should not start a business without understanding how the accounts and finance work as these are the things that measure the health of the business and ensure that it can function.
The next thing that I would stress to people who want to start a business is to get a job in sales, read sales books, listen to sales audio recordings, watch sales videos and attend sales seminar because no matter what your business is, you will need to be able sell. There is nothing in this world that hasn’t been sold, that includes foot massages through to moon landings. If you can’t do sales or at least understand sales and its importance then do NOT start a business.
If you understand business finance and sales then the risk reduces significantly. In my opinion I always think there is more risk in having a high salary job as you never know what is coming round the corner as you are not partial to ALL the information which contributes to decision making. Where as if you start a business you, as the boss, know everything and should - with your finance and sales skills - be able to manage whatever situation arises.