1 Minute Business Tips - Risk

There is one four letter word that every entrepreneur is familiar with - that word is risk!

The key to success as an entrepreneur isn't necessarily having a high risk tolerance - it's more about having confidence in your ability to manage risk and being flexible enough to handle challenges.

To assess your ability to manage the risk associated with starting or expanding a business ask yourself these 5 questions.

One - Are you confident your business will succeed? Have you conducted the research necessary to determine if a market exists and that you can you compete with your competition?

Two - Are you able to adapt to change and persevere if things don't go exactly as planned?

Three - What do you stand to lose if the business fails and are you willing to risk that? This could include money, personal and business assets, even relationships.

Four - If you have a family, consider how they will tolerate the risk and challenges associated with operating a business.

Five - Does taking risk thrill you or scare you to death. If you know it will keep you up at night with worry - you might want to reconsider.

Risk can be a very good thing. Great rewards can come to those who take risks. Keep in mind that most successful entrepreneurs take calculated risks not foolish ones.

I'm Deb Neuman for WABI TV 5 News