Afraid of risk? Then take a look at this…

Photo courtesy of "Death to Stock"
Photo courtesy of “Death to Stock”

The other day I heard about a business person who exited a company to get hold of pension money to invest in a business. The basic premise would be to use the pension money to expand and grow the business. The business person is still young and able to recover if the business goes bust.

It reminded me of someone some time back who was fired from his director position with a large company. The way the company went about firing him was disgusting but let’s not get into that here. The business person decided to go into an industry where he thought he knew what was involved. So he invested his pension money and extended his home bond for the capital requirements of this new business. Within less than two years, the business went bust. Costs were underestimated and demand for product was overestimated. Plus a competitor, much larger, entered the market with big resources, making the small manufacturing business unviable. Continue reading “Afraid of risk? Then take a look at this…”

How to manage execution risk in your new business

Risk (Photo credit: The Fayj)

Starting a new business venture based on your new idea for a product or service is risky. How do you remove as much of the risk as you possibly can?

Entrepreneurs may have such confidence in the potential of their new ideas that they take out loans on their property, borrow from friends and family and even approach small business lenders.

With so much at stake, so much invested in their new product or service, a new business venture had better be viable.

Losing your life savings by placing a big bet on an untried or unproven concept could result in a disastrous personal and financial setback.

Are you staying opportunity focused in this economy?

Credit: Creative Commons

In this economy every source of income counts. But where do you begin to discover hidden or new sources of income?

You may wonder about the term “multiple streams of income”. What is it? A buzzword from some self-help business guru that helps him or her sell their books and other products. It’s really a term to entice people into believing that it so easy to make money that you merely need to turn open a tap and money will pour into your banking account. This does not happen in the real world. You need to work long and hard for any sort of income.

In every business or new venture knowing where additional sources of income will come from is important. The simplest example is a product business that adds after-market service to their offering. This provides two sources of income: product sales and service. Continue reading “Are you staying opportunity focused in this economy?”