Personal Risks

By Mahmood Reza

There are a number of main risks you need to be aware of and consider as you set out on this journey which are summarised here:


Personal & Emotional Risks

Instability

In the modern age, job stability, even when employed by someone else, is becoming a thing of the past.  

Your employer or boss may:

  • Let you go anytime they want, 
  • May create a hostile environment that leaves you with no other option than to leave.

Failure to retain a client

When you are your own boss and work on multiple projects for various clients you will need to commit yourself to completing the job to their satisfaction if there is any chance of repeat business.  

However, you will also need to be constantly aware of where the next piece of work or sale is coming from to create resources to fall back in the event that business dries up.


Career Growth
  • Becoming your own boss is a personal lifestyle choice
  • You have the freedom on how long you choose to be your own boss
  • Take responsibility for your own professional development to remain competetive
  • Ensure you keep up with technological changes relevant to your type of business
Budget for your growth

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Do it for the RIGHT reasons
  • Ensure your idea is commercially viable
  • Do your market research

Just because you love something doesn’t mean you should convert it into a business.

One of the risks of being your own boss is when the newly-self-employed person gets excited about what it is they want to do and this leads them to feel their passion is/will be shared by others, which it may, or may not.  

Research your business idea for being self-employed and make sure it’s viable.


Lack of business experience
  • Do you have sufficient professional experience?
  • Do you have access to a professional assistance for the Admin functions of your business?
  • Do you have access to people who have successfully started their own businesses?
  • Have you budgeted to ensure your skillset remains up-to-date?
Always bear in mind that failure to enhance your business knowledge can be detrimental to the success of your business.  
  • Do your market research!

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Lack of planning

A successful major event needs:

  • Thorough planning
  • A methodical approach
  • Strategic planning
  • Hard work
  • A robust Business Plan
Your business plan helps you to focus on your goals and your vision, as well as setting out plans to accomplishing them. 
  • Revisit your plan regularly
Revisit your plan at least annually to ensure it is aligned with changes in your goals or the market place.

Lack of free time
  • A sustainable work/life balance

A good work-life-balance is important for your:

  • health, 
  • wellbeing 
  • continued motivation.  
Keep in mind that your physical and mental health is more important than just making money.  
  • Start allocating paid time off to you for every full month of work

Poor workload management
  • Dont' waste time on unimportant tasks while critical tasks pile up

All tasks need to be done;

  • If you don’t like to do them (or don’t want to spend your time doing them), hire someone to do them for you.  
  • If you need help to work out what is most important for you to focus on:
    • Get a coach or 
    • Business mentor.

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Bad luck

Unforeseen changes in external circumstances can have a devastating effect on you and your business:

  • Natural disasters, 
  • Sudden bereavement.  
  • Illness (either your own or a loved one) 
  • When you are your own boss, you have no automatic entitlement to sick pay.

Activities:

"How does the above list relate to you"?
"What are the key risks and how do you mitigate against them"?

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