Managing risk in a start up during a tough economy

Launching a company, even in the best of times, is one of the most challenging exercises a person can go through. In an economic recession, it can seem downright impossible. But founders across the country, and indeed across the globe, are in the midst of that process as I write.

Source: Alexa von Tobel: Eliminating risk is the key to building a startup during an economic downturn | TechCrunch

A long time friend remarked that entrepreneurs are thought of as big risk takers. But he disagreed – he said he worked hard to manage the risk to a low level. Sure, he took risks, but did so in a way that risk was manageable. He knew what he was getting into and how he would likely respond if problems emerged.

His view is counter to the popular view that entrepreneurs are always big risk takers – and that big risks were essential to success. Instead, he saw himself as a successful entrepreneur because he worked to reduce excessive risks to a manageable level.

Something to think about!