Risk Vs. Reward

Once I had jokingly said that I take only so much risk that I am safe. Joking, because when you are safe, that risk isn't risk at all. There is a thumb rule, when it comes to Risk & Reward. The risk & the reward are directly proportional to each other. Higher the risk, higher is the reward. There is though, a science to it. Though there is risk everywhere, there are things where we can minimize it. Even when we get out of our house, there is a risk associated. But that does not mean that we should never get out of our house. If we do not get out of our house, how do you work? There is a risk everywhere. 

For small businesses, the risks are much more. But aren't there risks for others. How do you minimize risk? By planning. When you start a project, do the survey properly. Many of them start up because they have been doing the same work for others. However, they discount the other works that need to be done while doing the business. While working for others, they might be doing the work. But who will bring in the work. Such projects start and end soon. For avoiding the risk, you need to plan about how to bring in customers. With minimizing the risk, your rewards will increase. 

You can also look if you can get a running unit, because with the running unit, you can start revenues from Day 1. You just have to put in some money, bring in systems, market, etc and just deliver to get in money. By doing this, your risk is minimized. You can also have good communications with the prospects, because prospects would turn into customers one day. Don't let your existing customer go elsewhere. When you get a chance to work, satisfy your customer. A repeating customer is better than two new customers. 

Proper cash flow planning is another important thing that you should be doing. This is very important if you are looking to keep your business alive. Risks are many, so are rewards. Just take the steps to minimize your risks.