It’s Business, And It’s Personal

Business may bring high risk and reward

On Behalf of | Apr 6, 2016 | Business Formation & Planning |

North Carolina entrepreneurs may have to adapt to thinking about business in a new way. Whereas business was once a place where there were ventures that were only moderately rewarding but carried a high chance of success, today, there is a higher chance of failure but the upside may be much greater. The key is to avoid getting discouraged by failure because in this environment, there are likely to be a number of missteps before a success happens. Entrepreneurs need to be measured in how much they risk so that they don’t lose everything in a bad business venture.

This approach might be compared to playing a roulette wheel that is landing on the winning number twice as often as it should. If the gambler knows this is taking the place, then it is possible to make proportional bets each time that do not lead to financial disaster but that will give big dividends if successful.

Understanding the possibility of failure is one thing, but it might be a harder concept to grasp emotionally. Entrepreneurs should keep in mind the example of Hollywood studios that know some of their films will be hits while others will sink without a trace.

Having good legal counsel may be an important part of establishing a business. Whether the choice is a corporation, a limited liability company or some other type of entity, an attorney can assist by preparing the proper documentation and outlining the regulatory compliance that will be necessary. Creating a solid business plan might also help to increase the chances of success by anticipating potential problems and solutions.