Starting a Small Business? Here are 3 Tips for Minimizing Risk

By Funding Gates

Starting a small business is one of the most exciting tasks that a person can take on. This being said, it’s also not without its risks. Make the wrong moves, and you may end up finding yourself in a serious predicament. After all, starting a small business comes with a great deal of different costs, and whenever money is involved, it’s exceptionally important to be careful with every decision you make.

Minimizing risk can be easier said than done, but it’s certainly not impossible. Here are three tips to get you started.

1. Get Your Start Online

The dreams of opening a brick and mortar small business can be difficult to ignore, but there’s no getting around the fact that there is less risk if you start your business online. This is the perfect option for those who are looking to enter into retail, as setting up an online shopping cart is exceptionally easy and far less costly than it would be to maintain a physical location. If things begin to move in a forward direction, you can always consider opening up a local shop. To start off, though, the Internet will be your best friend.

2. Choose Between Offering a Service or Product

Minimizing risk is often carried out by keeping costs as low as possible. Bearing this in mind, you’ll have a much lower chance of running into issues if you decide to offer a service instead of a product (at least at first). Products are almost always more expensive to develop than services, and you won’t have to worry about sitting on a huge inventory of unsold items. Services are also flexible, which means you won’t be pigeonholing yourself if you take this route. Over time, you might want to consider incorporating products into your business model, but only once you’ve found at least some success and have been in business for a fair amount of time.

3. Consider Buying Into a Franchise

Most people will admit that they’d prefer to start their own business rather than enter into a franchising scenario. As far as risk goes, however, there is plenty of good to be found in buying into a franchise. Franchises not only come along with name recognition, but they tend to be time-tested business models that are far less likely to fail than a brand new concept that hasn’t been out in the open for a long enough period of time.

Depending upon what you’re looking to do with your career, there’s a good chance you’ll find a franchise that is well-suited to your needs. Not all franchises are created equal, however, which is why it is essential to learn as much about the company as possible and sit down to discuss whatever questions you may have before signing up for anything.

So don’t let risk get in the way of starting the business of your dreams. Think on your toes, and everything will fall into place.

This article was originally published on Funding Gates. Funding Gates is the world’s first CRM platform for receivables management. Serving as an online credit department for small businesses, Funding Gates is set on making managing receivables the easiest part of running a business. 

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Funding Gates
Funding Gates, the world's first CRM for receivables management, operates as an online credit department for small businesses, allowing them to finally track, organize and manage their receivable with simple clicks. Set on helping small businesses get paid, their online community creates conversations around financial management for small businesses.

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