June 22, 2007, Newsletter Issue #113: Being an Entrepreneur: Work at Your Own Risk

Tip of the Week

Entrepreneur.com Tip: If you think being self-employed is easy and safe, think again. Whether you’re looking for a part time business opportunity or want to work for yourself full time, know the top three risks involved in operating your own business before you get started.

1.Money: Part of the entrepreneurial spirit is being able to jump without a safety net. If you need to know where your next paycheck is coming from, entrepreneurialism may not be for you. Especially in the beginning, your income will be sporadic at best. You may even go in the hole in an effort to get your business started.

Action: If you are able, save at least 6 months’ worth of expense money before you start your entrepreneurial endeavor.

2.Clients: Just so you know, clients don’t go looking for you when you have a new business. You have to put a lot of time and effort (and money) into attracting clients and showing them the benefits of your product or service. Without clients, you have no money (see #1).

Action: Make a business and marketing plan that details how you will attract customers to your business.

3. Security: Working for someone else provides you with a certain sense of security. You know when your money is coming in, and you know what kind of benefits you have. You know that more than likely, you still have a job tomorrow when you wake up. A successful entrepreneur can operate without that security, and understands that in order to achieve significant gains, there will be significant risks.

Action: Decide whether you can live without the safety of having someone else responsible for your work-related well-being.

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