Risks

  • Failure. Entrepreneurs must assume the emotional and financial risks of failure. The failure rate for new startup businesses is high, even with the best planning.
  • Time. A major drawback to starting a small business is the tremendous amount of time it takes to make the business successful. Most entrepreneurs report 60-70 hours per week as normal. Small business owners spend an average of 12 hours a day, 6 days a week on business activities.
  • Family. Because of the strain of operating a business, families can suffer. Many entrepreneurs find the lack of time for family, community, and personal activities is the highest price they pay for business ownership.
  • Money. Most startup business owners have their own money at risk. It is normal for small businesses to not earn a profit in the first two or three years. If you need financing, you will be expected to provide 20% or more of the total funds. The number one reason small businesses fail is because they did not have enough working capital to survive the first few years of operation.