Starting your own business: risks and rewards

Launching a new business may seem attractive and romantic, but it is necessary to think it through. Statistics give the facts worth thinking about. So, about 20% of new companies are unable to make ends meet and close during their first year. 50% of companies can survive within a 5-year period.

The first year is the most challenging as it requires a significant sum of investment to start. The business person may place 100% confidence in and be optimistic about the business idea, but the market may think differently. The supply may not meet the demand. As a result, insufficient revenue and costs exceeding revenue lead to a deficit. Thus, the business person may not only lose the invested upfront capital but also bear additional losses.

Besides, starting your own business implies working 24/7 and bearing additional responsibility for almost everything. Especially at the beginning of a new business, when there are no effective and stable business processes implemented, the amount of time and effort needed from a business owner may be tremendous. So, weigh up your strength and possibilities.

However, there are some substantial advantages. Additional responsibility goes tightly with the extra reward. The reward can be in money terms as all the additionally earned profit goes to the business owner. Besides, the owner sets the rules of business, relishes independence and has a strong sense of achievement when the company thrives.

Starting a business is challenging and needs accurate business analysis and calculations, as well as serious consideration before entering the race. It is always about risk and reward, tough work but an incredible feeling of accomplishment.

Risk Warning: The information in this article is presented for general information and shall be treated as a marketing communication only.  This analysis is not a recommendation to sell or buy any instrument.  Investing in financial instruments involves a high degree of risk and may not be suitable for all investors. Trading in financial instruments can result in both an increase and a decrease in capital. Please refer to our Risk Disclosure available on our web site for further information.

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3 thoughts on “Starting your own business: risks and rewards

  1. If you don’t have passion for your business and the sphere you’re in then you are doomed to failure. Heart is the first thing that should be considered.

  2. I had some extra money, and the thought of starting a business didn’t give me peace. But unfortunately, nothing came to mind. I may not be inclined towards business.
    To others similar to me, I recommend expanding their horizons. Instead of considering what company to start with, it is better to consider entrusting your hard-earned money to professionals and observing how they steadily grow.

  3. I am glad I started to use ISEC WM. They are very professional guys and have no doubt about their knowledge in the financial market. I fully trust them and I will recommend them to everyone. But I have a simple question, do I need to pass any KYC verification if I someday want to withdraw some money?

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