The BizFilings blog covering business tips and trends.
Does Your Small Business Have an Escape Hatch?
Published on Nov 4, 2010
Read 'Does Your Small Business Have an Escape Hatch?' at 'Time to Start Up,' the small business blog by BizFilings.
Etched in the very soul of the entrepreneur is that powerful urge to be a risk-taker. Entrepreneurs tend to follow the road less traveled while beating a different drum.
You get the picture.
But as Richard Branson, entrepreneurial legend and founder of the Virgin Group, points out in his blog on www.entrepreneur.com taking risks "comes down to a distinct approach."
"Over the years, my colleagues and I have developed quite a reputation for risk-taking. It's true that we have been fearless about taking on new businesses, sectors and challenges even when the so-called experts told us that we did not know what we were doing. But while, to all appearances, we do have unusually high tolerance for risk, our actions always spring from another principle: Always protect the downside. I think it should be a guideline for every entrepreneur -- or anyone involved in business ventures ... So, if things don't work out, don't hesitate: take that escape hatch ...," Branson writes.
So what about you? Do you have an escape hatch? And I'm not talking about the hatch the JetBlue airline steward used to flee his job. I'm talking about an escape hatch for protecting your personal assets, your home or your 401K. Part of being a risk-taker is being smart about it - carefully calculating and strategizing - while including a back-up plan in case things go awry. That my friend, is what incorporating your business is all about.
Starting a business always carries its share of risks so why not minimize the ones you can control.
What lessons about risk-taking can you share with small business owners?