Approaching Start Up Financial Risks

Approaching Start Up Financial Risks

financial literacy

I had a discussion with a person that was interested in creating a business the other day which required an investment to set everything up. However, the concern he had was that he didn’t want to spend too much money as he has no idea whether or not it will be successful. He doesn’t want to end up with a pile of debt in case things don’t work out. Therefore, he tried to find people he knew to help him set things up for less money.

When it comes to financial risk I think the most important thing to think about is if there are any ongoing fees that you have to pay as a result of your venture. Keeping those down to a minimum would be the primary factor I’d say. It’s almost like starting a website that will conduct all of your business. If the risk after you create the site is simply a $12/month plan then in my opinion that is a reasonable way to go assuming you are trying to be cautious.

For that “unsure “mentality I think my limit would a $50/month loss. Sounds really little, but my way of thinking is if I am that doubtful to want to go all in, so to speak, then most likely my efforts won’t be as urgent to make sure that failure is not an option. No point in investing so much financially in that sense. If I am going to lose anything it should be more about my time.

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