Yes, starting a business is risk. But how much risk is the question more than whether there is risk at all.
If you know what you are doing, then it is much lower than someone who is an amateur. You avoid the pitfalls and mistakes.
One of the major mistakes that entrepreneurs and business owners make is defaulting to building overhead when there is a digital ecosystem and advantage all around. I’m not sure why people are so drawn to office space, headcount, computer servers, inventory and all the hardware that can sink a business. This is the world of atoms where hard, tangible goods can make you feel like you have something, but that are hard to get rid of when things change. Atoms are a drag on your business and create layers of cost, management and headaches.
On the other hand, there are plenty of smart entrepreneurs that realize that change is happening faster than ever. The idea of stasis is an artifact of the industrial age where mass production and less customer access was the reality.
If you start to ask simple questions like:
How can I have a virtual business?
What if I hired real talent and forego mediocrity?
What if I don’t hire but partner?
In a worst case scenario, what will drag me down?
How fast can I change strategies?
you might be surprised where the thinking might take you. It could lead to a much more profitable, lower risk approach to your business. You can peel away dead weight and lighten your load.
You could also refocus energy and resources to all those passing opportunities because you can see clearly and act fast.
If your business runs on bits rather than atoms, then scaling your business becomes part of the DNA. Bits are malleable and allow you control without commitment.
If you are looking for some ideas, check out The Mesh and see how others are doing it. It’s been happening for newspapers, music, retail, recruiting and an array of industries and it will happen in your industry as well. It’s not only efficient, but too opportunistic for the person who wants to lower risk and be more profitable.
