Want to start a Business: Try Low Risk Business

[Jasmine]

When you have decided to start a business you need to try a business that has low risk.

According to the Bureau of Labor Statistics about 20 percent new businesses fail within 2 years, 45 percent within the first 5 years, and 65 percent within 10 years.

These figures should not deter you to start a business, in fact, you should use these figures to study which 35 percent business can survive beyond 10 years.

When you have decided on the business, you need to check whether the idea is right or not.

A business that solves problem will never go out of business. Does your business pass this rule of the thumb?

If you want to start a business, look for the problems others are having and think about how you can solve those problems.

You also need to make your company transparent, recruit proper people, and maintain high level of ethics.

Try a sustainable business model.

 

[Suba]

I don't understand what your criteria are to classify into high risk business and low risk business. Is it based on the accident rate of the workforce, or is your classification based on the risk of business failure or loss?

Whatever your business will certainly have risks, the higher the level of risk, the higher the level of profit you will get and vice versa. Your business will of course always encounter risks, whether it's the inherent risk of your business or the risk of strategy and decision making, of course there are many other factors that make the risk more or less. For that as business people we need to learn risk control.

Many people interpret risk as a negative or business loss, but there are also many people who take high risk as an opportunity and challenge to get a higher profit.

Every entrepreneur is expected to be able to master every business risk they run, such as the product or item you sell is flammable, so you need fire insurance,

 

[Mika]

If you want to start a business, the first thing you need to check is your risk tolerance level. What exactly is a risk tolerance level? It is a level that helps you to understand how much risk you can bear without harming yourself. Understanding your risk tolerance level means drawing a line between the risk you can handle and the risk you cannot handle. In order to understand this, first of all, you need to evaluable your net worth. Understanding your net worth means you know how many liquid assets you have, how many liabilities you have, and how many fixed assets you have. This will help you understand how much business risk you can take without harming your finances. Once you know your risk tolerance level you can determine which business is right for you and which is not. There are also other factors to consider regarding whether the business is appropriate or not.