Want to start a business? Have a few safety nets.

Because risk is part of any new business, a parachute (or safety net) should be included in any new start-up.

Contrary to what most people think, entrepreneurs are risk adverse.  While not having the right safety net shouldn’t keep you from a new venture, it can help prevent an unnecessarily rough landing.

Consider the following safety nets for your entrepreneurial journey.

Work full-time, for a while

• Keep your day job.  Do not give it up while you dream, learn, save for your new business, and then start it.

Next, find supplement income if possible

• Once you decide to devote more time to your business, take into account the benefits of a part-time job or side-hustle.  Consider taking on extra work to supplement your income while starting your business.  Find a supplemental income source that’s flexible and is preferably in the industry you are interested in and can learn from. 
• Consulting or freelance work.  Again this type of work brings in money, plus you are building a network with others workers and companies that your start-up might do business with.

Pairing-up well makes a huge difference

• Choose a life partner wisely.  You will need the support of your spouse, if you are passionate about becoming an entrepreneur.  (S)he can provide monetary and emotional support to enable you to pursue your dream, and be there if it is not a success.
• Find the right business partner.  If not going it alone, it is essential to pair-up with someone who is as committed in time and money, plus shares the same business philosophy and ethics as you.

Financing your business: there are a number of sources, some better than others

• Stay lean; if possible self-fund through savings and have the business profits fund the business’ growth.
• A loan from family or friend(s) involves personal relations and can get uncomfortable if the money needs to be paid back early when funds are stretched to fund growth, or can’t be returned due to business down turn.
• Grants.  It is possible to get grants from the government to start your business.
• Crowdfunding.  Pre-selling an idea through crowdfunding allows you to raise capital to start your business with.

Before going big, try

• Testing.  You can stay lean by focusing on a prototype and then testing in the marketplace.  Today you can do this easily and inexpensively using social media platforms.

In summary, entrepreneurs always doubt themselves a little.  And, starting a new business can be rough.  But with the right safety nets, you can become an entrepreneur without putting your future and the future of your family at risk.