Comments on: Starting Your Own Business Does Not Have To Be Risky

By: colin

colin — Mon, 08 Feb 2010 20:17:55 +0000

i have semi started my business but i have two dependants (3 including my mrs) and i hate my current job, so i cant leave until my business makes enough money but it wont make enough money until i leave my job to put the time in.. HELP!

By: kris

kris — Wed, 23 Dec 2009 03:05:20 +0000

Thank you so much for your posts, I am truky nervous about starting on my own, but I want to start now, don’t want to wait till I’m an old man to have regrets of things I could have done. Your posts are giving me a great deal of courage even though my brain is telling me no. My hart know what it wants and I’m going to follow it, one step at a time

By: Best Of MyWifeQuitHerJob.com On Entrepreneurship | Wizpress.com

Best Of MyWifeQuitHerJob.com On Entrepreneurship | Wizpress.com — Fri, 13 Nov 2009 17:31:20 +0000

[...] Starting Your Own Business Does Not Have To Be Risky [...]

By: @lnxwalt

@lnxwalt — Fri, 06 Nov 2009 23:52:45 +0000

The 99% in a year figure is an example of how rules of thumb are often exaggerated. When I was taking my earliest biz classes, I learned that the US Census of Small Business, completed every five years, showed that 90% of all businesses were not around for the next survey (FIVE YEARS).

The authors of my textbook pointed out that:
* Failures included those that closed because the owner died or retired
* Failures included those that changed their name or location
* Failures included those that changed ownership

I doubt that the numbers have changed that much in 20 years. http://www.amazon.com/gp/product/0030225930/ref=olp_product_details?ie=UTF8&me=&seller= is a newer version of the book.

I don’t think most people realize that the magazine “1,000″ companies also fail, or that those big companies have cut their domestic employment year after year, probably dating back to the mid-1970s.

Think about it: if you’re the CEO of a big company, the way to get a bonus is to “restructure”, laying off a few thousand US workers, and possibly replacing them with overseas workers. This sparks an uptick in stock prices, triggering your bonus. After a few years, the price starts to decline because of the damage to the company’s productive capacity, so you sell out to a buyout group that closes some factories, lays off some workers, and cuts benefits to enable debt repayment. Once this works, they then go public and do it over. The only consistent thing about all parts of the cycle is lower employment numbers.

Walt Hucks (@lnxwalt on Identica and Twitter)

By: Frankey

Frankey — Wed, 04 Nov 2009 15:06:26 +0000

Starting your own business definitely does not have to be risky – if you are a person made for entrepreneurship, if you have the “right” idea and if you have the endurance to stick to your business – even in hard times.

Even though the 99% statistic is not true, there still is a risk – no one would deny that. However, there are possibilities to minimize this risk – for example by starting “a low cost internet business” as Steven has suggested – or by buying a franchise.

The experience gained from pilot units run by the franchisor as well as from other franchised outlets reduces the risk of failure in comparison to running a sole proprietorship. Franchisees are not starting from scratch but buying into a potentially established business, thanks to a brand that is already known on the market. The franchisor supplies his know-how and the business system, so that management is simplified and methodology has already proven successful. Moreover, communication and marketing potential is far superior to resources available to an individual acting independently and cost less.

Steven has rightly pointed out that “If someone has already taken your idea, don’t let that stop you”. I would add this: Instead, why don’t you use this person’s know-how and make his business yours?! Together you are stronger and the market is not only “probably big enough for the both of you”, but it might even need the both of you!

By: Gail

Gail — Tue, 03 Nov 2009 18:05:31 +0000

Thanks for debunking the 99% “statistic.” Many of those 99% are businesses that never should have been started. Talk to your hairdresser, your septic pumper, your auto mechanic, your bagel-shop owner. When the complicated ego-tripping ideas have all been forgotten, those folks will still be in business. If you’re shy about talking to them about your business idea, figure out why. Is it because it’s a bad idea? Then find a better one.

By: Steve

Steve — Tue, 03 Nov 2009 15:33:30 +0000

@Noel
Sorry to hear about your business. Times are hard right now with businesses cutting back on their budgets. But things will eventually recover and I’m sure your business will be that much stronger when it happens if you stick around. The downtime you are experiencing is also a great opportunity to brainstorm new ideas or reinforce existing ones with your graphic design business. Best of luck to you!

By: Steve

Steve — Tue, 03 Nov 2009 15:29:54 +0000

@Dragos
I’ve known you for a little over a year now and I have no doubt that whatever you touch will turn to gold. This is quite evident in your drive and in your writing as well. Determination and persistent always trumps risk.

@Lana
Good for you! It’s nice to have a professor or mentor there to reassure you. Thanks for sharing.

By: Steve

Steve — Tue, 03 Nov 2009 15:26:27 +0000

@Xurxo
I too have found that this statistic has been misleading when I look at friends and family who have started their own business. I think it has to do with who we associate with. My friends are all fairly competent and that 99% statistic represents the average. Clearly Xurxo, you and your business partner are not average either!

By: Steve

Steve — Tue, 03 Nov 2009 15:24:23 +0000

@Robert
Those people who need to fly or die shouldn’t be complaining about the risks of starting a business because the level of risk is entirely in their hands. It’s just a matter of finding the right motivation to follow through. Thanks for the comment.