A new business can protect itself if the entrepreneur is a risk savvy claim LGB Direct.
(1888PressRelease) July 30, 2012 - LGB Direct's MD Lyudmil Borisov says `an entrepreneur is one who has the will to risk his money to make money. Everyone has a dream job they would like to get into at one point in life. However, it is not always a bed of roses once we get the jobs we have been craving for and some of us end up deciding to start our own businesses is the only way to get what we want'.
Lyudmil Borisov believes that, entrepreneurship is for people who are ready to take a risk after carefully assessing their circumstances or situation. These are the people he calls risk savvy. It is not always easy to venture into starting a business and leave the security of a good job and salary. One has to know the risks involved and be prepared to encounter them.
`Risk is part of the business game' according to LGB Direct' MD. 'Like a baby taking its first steps, it must be prepared to fall but also get back up and try again before it will succeed'.
A new business can protect itself if the entrepreneur is risk savvy. These are smart people who make calculated moves according to the risk faced.
Risks: the good, the bad and the gut- wrenching.
LGB Direct suggest viscerally is one way to tell the difference between the risks. ' Using your gut instinct is import in business, being risk savvy involves the use of the right brain as well as paying attention to your gut' adds LGB Direct's MD.
LGB Direct believes that when in the process of analyzing a risk in business, one has to consider two important points. The upside potential- if the risk is taken, one needs to understand the positive impact on the business. In addition to this the worst case scenario but also be planned for. Since mistakes often happens, one needs to ensure that they don't paralyze their business, rather learn from it and make wiser decisions next time.
'A smart or risk savvy entrepreneur will always ensure they reduce the impact of the worse case scenario by putting into place mechanisms that will ensure their exposure is not very high' continues Lyudmil Borisov of LGB Direct.
These mechanisms include:
1. Insurance - this always helps in risk reduction
2. Incorporation - a risk savvy entrepreneur in a small business must incorporate his/ her business. The corporate shield protects one's personal assets from mistakes and risks in a business.
3. Written contracts - while people will remember things as they wish to, a written contract/document will help protect against any misunderstanding that may occur later.
Lyudmil Borisov of LGB Direct agrees that though risks are inevitable in any business, savvy small- business owners can manage to minimize them.