Recently, I'd had several friends pose this question. Included in
this group were people concerned about their future – both employed and
unemployed. They've asked:
– How important is the underlying economy to start up success? Answer: Somewhat important
– Can a new business really succeed in today's economy? Answer: Yes
core consideration is your personal tolerance for risk. Risk is a great
academic concept and a pivotal investment concept. On a personal basis, accepting the consequences
of risk can be hellish.
First and foremost, you have to be able
to define how much risk (think total dollar outlays for how long) just
to get a new business to positive cash flow. Every business has a start up cost — even a lemonade stand.
If you are thinking that starting a business is a way to create a salary for yourself — you probably going to be disappointed.
Creating a business is about customers. It is not about you and your needs.
Peter Drucker famously said, "The purpose of a business is to create a customer."
In the next post, we'll dig into what it means to "create a customer".