There’s no denying that starting a business is risky: half of all businesses fail within just five years.
While there are ways to reduce the risk of starting a business, such as taking the time to do market research up front, it’s also true that some businesses are inherently less risky than others.
If you want to start your own business but want to avoid the risks, here are some suggestions.
1. Consulting
If you have experience in a particular industry, you can offer your skills through consulting services to help other businesses improve their business. For example, you could use your money management skills to help other small businesses with their accounting, or use your marketing experience to help companies with their marketing strategy and social media presence.
In the US, companies spend $2 billion a year on consulting services, and the average consultant salary is $88,950, according to job site Glassdoor. There’s no guarantee you’ll make that much, but for risk-averse entrepreneurs, consulting could be a good option, allowing you to slowly build your business while continuing to work your day job.
2. Freelance
I’ve been working as a full-time freelance writer for over a decade, and while it’s not without risk, it’s not as scary a leap as I once thought it would be. For example, most of my writing work comes from a small number of clients who need a large amount of work on an ongoing basis.
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Not diversifying your client base can be risky, but the clients I have give me the opportunity to write content every day, which is a unique opportunity in the freelance market.
While that’s not possible in every situation, you could also mitigate the risk by starting a freelance business on the side to see what kind of traction you can get.
There are many different types of freelance jobs, and according to Glassdoor, freelancers earn an average of $72,842 per year.
3. Selling Online Courses
Selling online courses is another good option for risk-averse entrepreneurs because it doesn’t require you to quit your day job. It also can be well-paid if you can get your business off the ground: According to Glassdoor, the average salary for an online course creator is $71,521.
Of course, individual compensation may vary, but fortunately, there are established platforms where you can add your courses and maximize your chances of attracting customers. This is great for risk-averse entrepreneurs. Udemy and Skillshare offer thousands of courses on their sites and have millions of users.
Both platforms are free to use and receive a percentage of views and course purchases. make money.
How to get used to taking risks
Starting any business involves risks, but you can make them less stressful by planning and keeping costs low.
Creating a business plan is a great first step because it allows you to set goals and plan how to achieve them. Thinking through your plans carefully will give you peace of mind if you change your mind later.
Keeping business expenses low also reduces the stress of taking risks. With fewer business credit card bills, there’s less pressure to make a lot of profit, allowing you to grow your business slowly while trying out new products and services.
Remember, starting a business is rarely a risk-free endeavor, but choosing a low-cost business and creating a plan for success can help even the most risk-averse entrepreneur.
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