Starting any new business can feel risky and there’s no doubt that it takes a special kind of person to navigate the risks of starting something new.
But if you’re a little more risk adverse than the average entrepreneur, there are a few new business options that can help you minimise the new business gamble, without minimising your potential payoff.
Three Ways To Help Minimise Risk When Starting A New Business
1. Online vs. Offline
In today’s marketplace more and more businesses are being conducted online and it’s easy to see why. Lower overheads mean less financial outlay and less financial risk. But choosing an online business is far from just a financial advantage. More than ever before, online is where your customers are and that’s unlikely to change anytime soon. And the good news is you can create an online store quickly, without a lot of money and without the need to maintain excess inventory.
2. Franchising vs. Going it Alone
Starting a business from the ground up is a lot of work and relies on a lot of trial and error. Choosing to buy into a franchise is a great way to minimise risk and benefit from the experience of your franchisor. You’ll be buying into an established brand – with all the perks that a tried and tested business offers. What’s more, you’ll have lots help and support on hand from those within the established business to help you find your way. More often than not, recognised franchisors can also help you with your application for financing from the banks.
3. Products vs. Services
When it comes to risk, creating a new business within the service industry can be a great option. Service based businesses are far less expensive to set up, especially if you can also run the business from your home office – where there is no need to stock up on products or find employees to staff a shop when you can’t be there.