1. Entrepreneurs are risk takers naturally. Whether it is the forming of a fresh venture or the expansion of existing business, entrepreneurs face different kinds and examples of risk before any rewards can be realized. In pursuit of their dreams, entrepreneurs come to realize the delicate balance that exists between risks and rewards.
2.  
3. It's a given proven fact that starting and running your own business is inherently risky. Actually, according to the Small Business Administration, the chance of failure is extraordinarily high for entrepreneurs starting new ventures. Nearly 10% of most firms fail every year and nearly 61% of manufacturing firms close their doors within the initial five years of operation.
4.  
5. The tiny business failures are sobering statistics. So, before you "bet the farm" on that home based business venture or the expansion of your existing business, calculate and understand the potential risks and rewards. First, it's critical that you realize and assess just how much risk it is possible to tolerate in your new venture or the expansion of your existing business. Make sure you have a realistic view of your business opportunity and the upsides and downsides connected with pursuing it.
6.  
7. The rewards for launching a new business or expanding an existing business, however, can be great. Studies show that entrepreneurs account for a big proportion of the country's wealth and entrepreneurs have higher savings rates than that of traditional workers.
8.  
9. It is very important regulate how much risk you can withstand in a new venture or the expansion of a preexisting business. Before you even consider launching or expanding an existing business, you need to have strategies in place to offset potential losses or unforeseen challenges. As you assess your potential risk factors, be brutally honest and examine these questions:
10.  
11. * How many years is it possible to go without creating a profit?
12.  
13. * Can you tolerate possible financial loss?
14.  
15. * Can you survive the increased loss of all your invested capital?
16.  
17. * Have you taken steps to mitigate risk with insurance?
18.  
19. * Are you currently sharing personal risk with investors?
20.  
21. * Have you set aside savings to cover potential losses or dry spells?
22.  
23. * Do you have a contingency plan if you lose a key client or employee?
24.  
25. * Is it possible to afford to risk your capital, services, and reputation?
26.  
27. A feasibility study is an excellent tool which can help you to assess risk and reward. It offers a detailed investigation and an analysis of factors that influence assembling your project to determine set up project is viable. get more info examines the economic, marketing, technical, managerial, and financial aspects of your proposed business idea. The feasibility study is based on a cost benefit analysis of one's actual business, and the analysis is used to support your decision-making process. A feasibility study is an effective way to safeguard contrary to the waste of sources of time, people, or money which may be exhausted before a concept or project is regarded as viable.
28.  
29. Whether you are applying for a SBA business loan, seeking funds for expansion or plant modernization, or deciding which steps come next in growing your business, a detailed feasibility study offers you the professional support that you should make your case. A thorough feasibility analysis investigates the impact that every of following issues can have on your idea or project:
30.  
31. * Economic (labor, utilities, transportation, economic impact, etc.)
32.  
33. * Marketing (availability, plans, competition, targets and potential, etc.)
34.  
35. * Technical (site, equipment, modernization, constraints, etc.)
36.  
37. * Financial (cash flow, costs)
38.  
39. * Managerial (assessments, recruiting, training, and development)
40.  
41. The result of the feasibility study is really a thorough analysis of the feasibility of your proposed business idea or project. If your idea or project is deemed feasible from the outcomes of the study, then your next step would be to proceed with a formal business plan.
42.  
43. An author, speaker, and consultant, Terry H. Hill may be the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm located in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the problems and challenges they face in each stage of these business life cycle. Terry may be the author of the business enterprise desk-reference book, How exactly to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at [http://blog.legacyai.com] and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine."
44.  
45. By signing up for Business Insights from Legacy eZine at http://www.legacyai.com/Business_Insights_eZine.html you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Understanding of Business.
46.  
47. Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.
48. Website: https://cnnislands.com/to-get-started-an-online-business-first-begin-by-inquiring-why-and-what-then-just-how/