Latif Ahmed

Many people dream of leaving the shackles of their 9-5 job and join the ranks of all the successful entrepreneurs out there who have boldly charted their own career path doing what they love and loving what they do. The lure of being your own boss is ever so tempting to so many individuals. So what is holding all these people back from achieving their dreams of personal and professional fulfillment?

While there may be a variety of reasons that may be holding a person back from striking out on their own, one common reason why so many people are reluctant to take that step towards breaking free from their day job is the idea that starting your own business is a very risky endeavor. It is this fear of taking a risk that holds many people back. They view entrepreneurs as risk takers and since most people get into a comfort zone with respect to their job (even if they don’t like it) they put aside their dream of starting their own business in order to avoid risk.

But is it really true that entrepreneurs are more prone to taking risks? What kind of risks does a new business owner take that the “average” person working for a company not take? Well, the ultimate risk is that you could lose your business and all of your hard earned money that you have invested in it if the business is not a success. But then again, you could get laid off from your job at any time. In the age where downsizing and outsourcing is prevalent in so many industries, this is not an unlikely scenario for most people anymore. Hence, starting your own business may very well be less risky in the long run.

What most people do not realize is that they are putting their families at greater risk by relying on a single source of income from their employer. If this employer decides to eliminate their job, then they are on their own. According to recent statistics, it has been estimated that most people in North America are one or two paychecks away from personal bankruptcy, so you will have to decide for yourself what is riskier. Working at a job or working in your own business?

In the book “The Millionaire Next Door”, the author describes how a group of 60 MBA students were once asked what is the definition of risk? Most of them replied that the definition of risk is being an entrepreneur. When an entrepreneur was asked the same question, he replied by stating that risk is having just one source of income. He further elaborated that the entrepreneur who provides janitorial services to a company has less risk since he has multiple customers that he services and thus multiple sources of revenue.

The reality is that successful entrepreneurs take calculated risks. They carefully think about their business idea, prepare a business plan and evaluate all of the possible risks associated with their business and figure out how they will fund their business until it become profitable.
If you are thinking about starting a business then why not take the calculated risk and just do it?

ACTION PLAN

1. Think of a business that you will enjoy doing.
2. Prepare a business plan.
3. Register your business as a legal entity.
4. Use low cost methods to advertise your product or service.
5. Sell, sell, sell!