what are the risk and hazzard of entrepreneurs?
473746
The risks and hazards involved with being an entrepreneur are many, but with a lot of research, hard work, persistence and a little luck, they are offset by the rewards.\n\nYou first need to narrow this down. Do you want to open a house party consulting business or a nuclear waste recycling plant or (I bet) something in between?  \n\nIf you find something you love - something you are passionate about, research what others are doing with the same kind or similar businesses, study the demographics of the area you wish to enter and the trends of that industry/business/service then get together with a good counselor/mentor and accountant, you will get to a better idea of what risks you might have to endure and overcome.\n\nThe stat is that 80% of all small businesses fail within the first 2 years and food service fail at the highest and most expensive rate.\n\nI am a huge proponent of using the Service Core of Retired Executive (SCORE) as a resource.  They are a free, volunteer arm of the Small Business Administration (SBA). You can usually find out how to get in contact them through either the local Chamber of Commerce or Community College Business Development Department.
266047
No. Your own money would be the best. With your own money, you can pace yourself, and less pressure if the business does not work. There is greater risk if you take on loans, and more pressure.\n\nTake for example for a business whose startup capital is $50K. If this is financed from your own money and you lose out, then you are out of $50K. But if this is a loan, you will be out of $50K + interest and your collateral is at jeopardy. \n\nIt depends on your business objectives, your level and tolerance for risks, and how fast (or how slow) you want to push your business.\n\nBut if you have to go get a loan, always go for the cheapest (lowest interest rate and better terms). Shop around before signing on the dotted line
609020
Even if the business is incorporated, personal assets can be at risk. As many creditors ask for personal guarantees to be signed.
765656
Risky is the name of the venture capital game.  It is not for novices.  You have to be prepared to lose everything you put up.  Venture capital is a game for the rich and famous.  You have to be savvy so that you don't get scammed.  Return on investment may range from a loss of capital to unlimited amounts.  $10,000 invested in Microsoft, 30 years ago might be worth $20 million today.\nIf you have so much money that you don't know what to do with it all, then consider venture capital.
1152591
There's a lot of factors affecting the business\n\nThe Business owner/Entrepreneur\n\n- how much does the entrepreneur knows about the industry and the business\n- how is the fit between the business and the entrepreneur\n- how open and responsive is the entrepreneur to the opportunities around\n- how does the entrepreneur react when threats emerges\n- what is the personality of the entrepreneur and how does this contribute or distract from business relationships including employees\n\nBusiness model\n\n- how sound is the business model\n- how diversified is the revenue source\n- is there a demand for the product\n- is the business model sustainable\n\nBusiness Environment\n\n- how business friendly are the taxes\n- what is the overall macroeconomic condition \n- what is the condition of the local economy\n- what are the business regulations governing the industry and how restrictive are these\n- what are the advances in technology and how is the business owner adapting these changes\n- level of competition, not only domestically but internationally\n\nHere are some articles that talks of the impact of government on businesses:\n\nhttp://usinfo.state.gov/journals/ites/0106/ijee/strauss.htm\nhttp://rru.worldbank.org/PapersLinks/Benchmarking-Business-Environment/\nhttp://www.house.gov/smbiz/democrats/Reports/SBI3Q2005.pdf
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I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.\n\nResearch, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:\n\n* Entrepreneurial Finance: For New and Emerging Businesses by James McNeill Stancill\n* The Business Startup Checklist and Planning Guide: Seize Your Entrepreneurial Dreams! by Stephanie Chandler\n* How to Really Start Your Own Business, Fourth Edition by David E. Gumpert\n* How to Really Create a Successful Business Plan: Step-by-Step Guide by David E. Gumpert\n* What No One Ever Tells You about Starting Your Own Business: Real-Life Start-Up Advice from 101 Successful Entrepreneurs (What No One Ever Tells You About Starting Your Own Business) by Jan Norman \n* Business Start-Up Kit by Steven D. Strauss \n* Start Your Own Business (Entrepreneur Magazine's Start Up) by Rieva Lesonsky\n\nThere are plenty of free informational resources out there. Check the source box for links to articles.\n\nHope that helps! I wish you much success & happiness in all your ventures!
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Starting a small business takes a lot of courage. But, as they say, courage does not pay the bills. To be successful – to stay in business – you need more than courage. You need a combination of hard work, skill, perseverance, and lots of luck. \n\nSome things you need to consider:\n- "How can I support my family while I build up by business?" \n- "What are my abilities?" \n- "Is there a market for the product or service I have chosen?" \n- "How long will it take this business to reach the financial goal I have?" \n\nYou may want to read the article "How to Start a New Business Successfully" http://www.powerhomebiz.com/vol51/launch.htm , which lists six steps to launch a new business successfully:\n\n1. Provide a benefit.\n2. Determine the fit with your market.\n3. Right timing is everything\n4. Be ready to support your business\n5. Develop a blueprint for success\n6. Market, market, market\n\nTo give you ideas on what exactly do you need to start your own business, here are ten things you need to know before launching your own business  “10 Things You Need to Know When Starting Your Own Home Business” http://www.powerhomebiz.com/052006/startingbiz.htm .\n\nI recommend that you read the following books:\n\n- What No One Ever Tells You About Starting Your Own Business : Real Life Start-Up Advice from 101 Successful Entrepreneurs \n- Starting From Scratch: How To Start A Business When You Don't Have Money \n- If You're Clueless About Starting Your Own Business and Want to Know More \n- On the Move : How to Succeed and Survive As an Entrepreneur \n- How to Make 1000 Mistakes in Business and Still Succeed \n\nThere are many businesses who started with so little yet grew to become good income vehicles down the road. From the article "How to Start a Business with Little Cash" http://www.powerhomebiz.com/vol30/nocash.htm  here are some tips on how you can start a business and earn more money even if you are short of cash today:\n\n1. Find a business that you can start for little money (e.g. an errand business where your main cost is telephone and gasoline is easier to start than starting a Subway franchise)\n\n2. Consider your time and effort - if you have little cash, you may have to work harder for the money because you will have no resource to outsource or employ others to do certain tasks for you; or you have no money to buy equipment so you can only do certain things the long way\n\n3. Get your creative juices flowing. With no money, the only thing you have is your imagination. Be creative and find ways to get things done \n\n4. Be prepared to do all the work yourself - from doing your business plan, finding financing, writing emails, shipping and handling, marketing or whatever processes your business requires. \n\n5. Be prepared to invite investors - you may need financing help from someone down the road so be prepared to share some of the pie.
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Work your tail off. Do the stuff that others won't do cause they are "too good for that". Take calculated risks and gambles. Develop a passion about something and know it inside and out. Make yourself the expert in an area. Never hesitate to help someone else and make sure everyone you know knows exactly what your business is so that they might either use you or recommend someone to use you. Think outside the box. Travel and get out of your usual environment to give yourself better perspective. Eat drink and sleep whatever the passion is...
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Running your own business, you will have to be able to focus on more than one thing.  Starting your business on a small scale part-time and keeping your day job is a good way to do this.  \n\nDepending on your stage in life, you may be able to have your parents or spouse support you while you take the dive and start a business on your own.\n\nEven if someone else will be supporting you, you should save up as much money as possible in the short run.  The biggest cause of business failure is not enough capital.
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I assume you mean in a business/career sense, since that's where you posted your question.\n\nThe biggest risk I took?  Quit my secure, stable job with a computer software company to sell insurance.  As it turns out, I'm a lousy salesman, and my business was short-lived and not very lucrative.\n\nHowever, because I had quit my job with the computer company, I was approached by a local college and asked to teach some computer classes - best job I ever had.  Loved every minute of it.  So, in retrospect - even though there were some pretty big bumps in the road, the risk I took paid off in the end.  When I was teaching, I was earning about the same amount that I was at the computer company, but I was much, MUCH happier.  I was home with my wife and kids more, easier to get along with.  It was better all around.\n\nLife is full of risks.  Look at ANY highly-successful person and you'll find that they took many big risks.  But when they took these risks, they never looked back.  They realized that they had made a decision and saw it through.  They believed in it, and while not all of their choices worked out as well as they had hoped, the ones that did work out well far exceeded the damage done by the poor decisions.
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Any small venture can be successful as long as:\n\n- There is demand for the product. People must want and buy the products. Otherwise, no amount of marketing can help the business. If there are no sales, the business will just be a cash drain for the owner\n\n- Adequate startup capital and proper management of resources. Lack of capital is the main cause of the failure of small businesses. If capital is insuffient, the business owner can either step up efforts to look for capital, scale back the plans or suspend the project altogether\n\n- Healthy profit margins. If your profit margin is only 2% -- and prices and inventory cost increase -- then your margin will be squeezed out. A small business can succeed if it is operating good profit margins that can help it withstand market shocks and price increases.\n\n- Good revenue per sale: if the profit per sale is only $1, then to make $100,000 the small business need to sell 100,000. A small business may find it harder to do tremendous amounts of volume.\n\n- Good niche area. A small business may find it hard to compete head on with Amazon.com or Walmart, for example, trying to be everything for everyone. But if the small business can focus on one area -- and be very good at it -- then it has better chance of growth.\n\n- Good cash flow management. A small business may have sales, but if it cannot collect payments and run out of cash, the business will have a hard time.\n\n- Growth prospects of the business and how growth is handled. A small cleaning business can only handle certain number of accounts effectively and efficiently, and profits will plateau. To grow, the business either needs to expand its staff to be able to handle more accounts or expand the area of coverage. Either way, how the business owner handles growth, and all its accompanying problems, can spell the difference between success and failure.\n\n- Suitability of the business with the entrepreneur. The entrepreneur is the heart of the business. Sometimes, the entrepreneur is the business (if it is a 1-person operation). The business owner must have the passion and drive to push the business to success.The person must be able to spot new opportunities and learn how to handle the challenges. Otherwise, if the entrepreneur loses interest, then the business may die.
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Make sure to check on the insurance.  It can be very high for a new business.  Are you going to be serving alcohol?  Liquor liability costs a lot.  When you do open, get the word out there.  Tell everyone.  Hand deliver take-out menus to all the local businesses for lunch.  Introduce yourself.
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Yikes is probably the correct response. Your friend sounds like an entrepreneur, in a negative way. If you go with it try to learn something other than how to spot "opportunities" to avoid in the future. Some examples of worthwile things to learn about might be the housing market, credit, appraising properties, and what it takes to have a successful, rewarding business.
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If you want to be an entrepreneur, you should have an unflinching spirit, be creative, talented and have a good “feel” for business, \nEntrepreneurs are tough people who regard problems as challenges, and who delight in finding solutions to seemingly impossible problems. Wise entrepreneurs acknowledge their weaknesses and try to correct them. They often surround themselves with people whose strong points complement their weaknesses.
1135115
Either way the risk is yours. Try not to make it too expensive.
33034
A successful entrepreneur is not necessarily a born leader or even a particularly good sales person. Instead, their talent is found in the ability to take risks, hiring the right people to help them, and identifying what they need to learn to succeed. Opportunity used to knock, but now it just honks a little as it drives past. The successful entrepreneur hops on before the horn blows. When you get right down to it there are as many ways to make a successful business, as there are successful businesses. You simply go make it happen.
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Here is a good article on the subject:\nhttp://www.entrepreneur.com/article/0,4621,285135,00.html\n\nHope this helps!