Many potential entrepreneurs who are on the fence about whether to launch their own business are concerned about the perceived lack of security and high risk involved in going out on their own. There is a common belief that working for others is more secure than working for yourself because of the “guaranteed” paycheck. As the recent economy is showing us, working for others is no guarantee of job security! One in ten of your peers are currently unemployed, and the job market is going to get worse before it gets better.

Working for yourself is often considered “risky” by non-entrepreneurs, but most business owners don’t see it that way. Instead, entrepreneurs see every factor as within their control and as an opportunity to build their business into a successful company. With your own business, you are in complete control of the direction of your business, you decide how and when to market, you manage all the finances, and you make the final decisions about every aspect of growing and developing your idea. While it’s true that any failures are your responsibility, business ownership tends to drive entrepreneurs to pay closer attention to the details and factors that drive success or failure, and have far more incentive to pick themselves up when they slip and try again.

The primary factors in reducing the risk in any startup are good planning, efficient marketing, and solid financial management. Good planning does not mean throwing together a basic business plan using a ready-made outline. Rather, you need to completely flesh out your business idea, considering all relevant factors from your business name to target market to expenses. Efficient marketing begins with a complete understanding of who you are trying to reach and how your product or service will grab their attention. With the ever-changing marketplace, it is more important than ever to research and understand the various marketing options available and establish procedures for ensuring your business is getting the best return for your marketing dollar. Financial management of the business is often a struggle for new entrepreneurs. Owning a business is all about turning a profit, regardless of the type of business you choose. It is critical for new business owners to select the right accounting system (not necessarily the most popular) that will allow you to accurately evaluate the financial health of your startup, and to understand the basics of evaluating the numbers on a regular basis.

If you are working a full-time job now and are reticent to give up that steady paycheck, consider starting your business part-time. As mentioned in the earlier “Time” posting, working on your idea just three hours per week for one year is equivalent to taking one full work month to focus on your startup. In addition, starting your business while still employed eases the financial pressures inherent in startups. By tightening up your personal expenses, many entrepreneurs may be able to launch their business without any outside investment. At a minimum, completing all of your business planning while working will make it clear whether working for yourself will be successful enough to support you financially and how much capital you will need on hand to survive those first few months.

One side note – some potential entrepreneurs worry that if they start a business and it fails, then all of their personal assets (house, savings, etc.) will be at risk. The primary avenue for protecting yourself from that possibility is to organize your business as an LLC or corporation and to make the effort to keep your business compliant. Basically, this entails keeping all personal and business records completely separate, filing all required paperwork and fees with the state on time, and maintaining accurate records of your business entity. In addition, new business owners should avoid providing a personal guarantee to any lenders or suppliers, if possible. Business failure does not necessarily mean a devastation of your personal assets as long as you plan from the start to protect and separate your business and personal worlds.

The slow economy and tight job market make this an excellent time to start up your own business. By planning your company conservatively enough to survive this economy, you will develop a culture of careful spending, efficient marketing, and consistent oversight that will prepare your company for explosive growth once the economy bounces back.

Start Here. Go Far. LaunchX.com