Make no mistake about it, as rewarding as going the entrepreneurship route can be, it is some very risky business you’re getting into, in the literal sense! This should not deter you though, because as mentioned, the rewards awaiting you if you crack it will be more than worth what you would have had to put yourself through. The point of this post is just to make anyone seeking to go down that route aware of what to expect so that you can fight through the really tough times and perhaps be better prepare to handle some of the risks which are not immediately visible.
So what are these hidden risks associated with entrepreneurship?
Getting a free risk-assessment from the bank
“But banks don’t offer free risk assessments!” If that’s the first thought that jumped into your mind when you read this sub-title, then you’re going to need to beef up a bit more on the entrepreneurial spirit you otherwise clearly have and think a little deeper than what the surface-level landscape looks like. That is after all what is required of any entrepreneur – lateral thinking, somewhat.
You’re otherwise absolutely right – banks definitely don’t offer free risk-assessments, with any such risk-assessment published over a public platform like the bank’s blog only really designed to draw in more prospects and turn them into customers.
So what you’re going to do is apply for a business loan from one of the major banks, even though you probably don’t expect to get approved for the loan. So you’re going to go through the motions, draw up a business plan as required by the big lending institutions and audaciously send through your application. Chances are you don’t have the required collateral to secure the loan, which is a rather ironic requirement of the business-lending, commercial industry. You kind of need to prove that you don’t need the money you want to borrow.
What this exercise will do however is force whoever is in charge of approving or denying business loans to conduct an expert business risk assessment. So when they send you the inevitable message that your loan application has been declined, what you will also have in your hands is a treasure trove of detailed information about the risks associated with the perusal of your desired venture!
Some key takeaways to expect
This rather cunning approach to entrepreneurial risk assessment affords you a direct channel to a more personalised risk-assessment profile to work with, as opposed to honouring mere hearsay and subsequently effecting weak, generalised risk-aversion mechanisms. With some notes from a bank manager as to why your loan was rejected, you can then make very specific plans to prepare for what would otherwise have been some well-hidden risks lying in wait.
For example, if you have to deal with an on-the-job injury situation and you don’t quite have the funds to cover the legal costs, you have enough time to seek out a Bellevue Workers Compensation Attorney to handle your case, with the ample time you have to do so making you wise to the fact that you can get a free consultation and case evaluation.
This type of lateral thinking can be applied to all identified, potential hidden risk areas.