There’s no denying that starting a business involves risk. Half of all businesses fail after just five years.
While there are ways to reduce the risks of starting a business, such as spending time on 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
Once you have experience in a particular industry, you can offer your skills in the form of consulting services and help other companies improve their business. For example, you could use your money management skills to help other small businesses with their accounting, or your marketing experience to help companies with their marketing strategies and social media presence.
In the United States, businesses spend $2 billion a year on consulting services, and according to job site Glassdoor, the average salary for a consultant is $88,950. There’s no guarantee you’ll make that much, but this advice could be good for risk-averse entrepreneurs, as you could slowly build your business while continuing to work your day job.
2. Freelancing
I’ve been a full-time freelance writer for over a decade. It’s not without risk, but it’s not as risky as you once thought. For example, I get most of my writing work from a small number of clients who need a lot of work on a regular basis.
Compare Business Credit Cards
Consider these business credit cards. These business credit cards offer a convenient, efficient way to separate personal and business expenses and simplify accounting and tax filing.
Plus, store cards offer valuable perks like bonus points, cash back, and spending trackers that can help you better manage your finances and save you money in the long run.
Not diversifying your customer base could be risky, but your clients give the opportunity to write content every day, which is a unique opportunity in the freelance market.
This isn’t possible in all situations, but you could also mitigate the risk by starting a freelance business as a side hustle and seeing how well it works.
There are many different types of freelance jobs, and according to Glassdoor, the average annual income for a freelancer is $72,842.
3. Selling Online Courses
Selling online courses is another good option for risk-averse entrepreneurs because you don’t have to quit your job. Plus, it’s well-paid for those who can get their business off the ground. According to Glassdoor, the average salary for an online course developer is $71,521.
Of course, individual salaries may vary, but fortunately, there are established platforms where you can offer your courses to maximize your chances of attracting clients. This is ideal for risk-averse entrepreneurs. Udemy and Skillshare offer thousands of courses on their websites and have millions of users.
Both platforms are free and receive a percentage of views and course purchases, meaning you’re under no obligation to pay unless you make money from them.
This makes you more comfortable taking risks
When starting any business, there are always risks. However, having a plan and keeping costs down can help reduce the stress of these risks.
Creating a business plan is a great first step because it allows you to set goals and plan how to achieve them. A well-thought-out plan can also give you peace of mind if you change your mind later.
Keeping your business expenses low can also reduce the stress of taking risks. With fewer charges on your business credit card, you also have less pressure to make a lot of profit, allowing you to grow your business slowly while you test 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.