Johanna Hofmann, MBA, MAc, LAc

Many people dream of running their own business. Unfortunately, many don't get started because they think that it is just too risky, particularly today. But is starting your own business really that risky or is that simply a myth?

Let's start by looking at the Webster's Dictionary definition of risk. Here, risk is defined as the: "Possibility of loss or injury - peril" and "someone or something that creates or suggests a hazard"

The possibility of loss or injury has been with mankind since the beginning of time. While it may have been danger from the elements, animals or simple infections in years past, today it may be danger or loss from cars, pollution or bad investments, to name just a few.

The heart breaking events of last week remind us that certain risks will be with us regardless of time or space. A certain amount of risk is part of our human experience: it always has been and always will be. Natural disaster is the type of risk that simply cannot be avoided.

The other type of risk is risk we willingly assume and have a certain degree of control over. Examples of this include: Getting married - it may and it may not work out Buying a house - it may and it may not work out Getting a job - it may and it may not work out And of course, starting a business - it may and it may not work out

While we may not think of getting a job or buying a house as risky, we most certainly think of starting a business as risky. Regardless the reason, for most, the real issue is how to deal with assumed risk, because most of us are afraid of risk.

While starting your own practice certainly can feel risky, there are a number of things you can do to help you deal with the fear of risk associated with starting your practice:

1. Face your fear. Be prepared to be wrong and to make mistakes, because you will.

   Through years of schooling we have learned that making mistakes is "bad" when in reality we learn by making mistakes. Think about how few of us would walk had we stopped trying after our first failed attempt. Not many!

2. Develop a business plan. Do your homework and know what you are getting into. Stick to your plan until you determine it needs to be changed because your business is changing.

   Few of us would start a journey without some kind of idea where we want to go. Yet countless people start businesses without knowing where it is they want to go with their business.

3. Limit your exposure by taking measured risk.

   Know your market: is there a need for your service. Know your capital requirements: how much startup and ongoing funds will you need. What will your revenue be? When do you expect to breakeven. Know your numbers.

4. Know that things will change - stay flexible and respond quickly to change. Don't be afraid of being "wrong".
5. And remember: "Even a thousand mile journey begins with a single step".

©2011, Johanna Hofmann, MBA, MAc, LAc. All Rights Reserved.

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