How do you define risk?

Ever had the thought of quitting your job and just start a business doing what you like. No boss, no deadlines, no long boring meaningless meetings, flexible working hours and of course no regular pay cheques.

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However, wait before you quit your job and plunge 110% right into your new journey, please read below:

“Basically if you study entrepreneurs, there is a misnomer: People think that entrepreneurs take risk, and they get rewarded because they take risk. In reality entrepreneurs do everything they can to minimize risk. They are not interested in taking risk. They want free lunches and they go after free lunches.”

“Entrepreneurs are great at dealing with uncertainty and also very good at minimizing risk. That’s the classic great entrepreneur.”

Mohnish Prabai

I think the key point here is how do you do everything possible to get a business starting while minimizing risk?

Entrepreneurship is no longer about taking risks. It’s about understanding and managing them.

Here are 2 key points.

For one, you could still start a business on the side while still holding a stable job. 

Take for instance in the article in the Sunday Times today (read here), for the lady behind the story (Churning out with Thai Milk Tea) – Ms Rebecca Chiu, 29, she was a corporate lawyer at international firm Hogan Lovells when she set up the first branch of Soi 55 – a hawker stall at Golden Shoe Food Centre in Raffles Place. The brand took off quickly and, in under six months, began turning a profit. Eventually she quit her legal career to focus on her business full time.

Start small, dream big, but take the first step out. What do you have to lose? Your boss probably has more to lose if you ask me. When the side business made enough for you to survive then leave the safety of your job (quit your job). It may not be much, but it pay for your daily necessities.

In fact a recession could be the best time to start a business.

Why the recession is a good time to start a small business (read here)

Top 10 Reasons to Start a Business in a Recession (read here)

I was reaching out to a bunch of guys who did this platform for a startup and was complaining that they can’t get leads to get the business moving. They did not launch their platform. All of them had full time jobs. They had the system, tech and platform but no customers. I offered to help them the leads, to let’s work as a team (to be part of their team). However, it is like pushing against a boulder, not willing to take the first step… tsk tsk…

Failed-Rocket-Launch_Fotor

 

 

From another perspective, take minimum risk with your finances.

Don’t plonk in your life saving into a single venture. Invest time and energy all you want into your endeavor. Set aside time to tend to your sideline business. It might take longer than if you focus all your time, energy & money in it, but well, if you work at it long enough, you will still get there eventually. Some things just can’t be rushed (well a baby takes 9 months to conceive right?).

It might eventually not work out. However at least your savings are still intact.

A good business is supposed to be profit generating eventually. If it is always going to suck and burn more cash than it generates, then that is probably a hobby not a business. Stop deluding yourself.

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About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room HDB flat.
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