Risks are a part of life . . . and business
Entrepreneurialism has been around since the dawn of time. The word itself has come to be defined as those who dare to start a new business, venture or investment. As early as 900 AD, there are records of printing presses making paper money in China. In the late 1700s, the Industrial Revolution brought about the rise of machinery and factory systems. By the late 1800s, railroads allowed business owners to ship their goods across the country.
Today, our world has morphed into a digital one where technology is king, and—as they always have—new and innovative businesses have started in order to address the overall needs of today.
And while entrepreneurs are applauded and encouraged, it’s important to note that not all of them will survive. In fact, according to the 2018 Bureau of Labor Statistics’ Business Employment Dynamic:
- About 80% of businesses with employees will survive their first year in business.
- About 70% of businesses with employees will survive their second year in business.
- About 50% of businesses with employees will survive their fifth year in business.
- About 30% of businesses will survive their 10th year in business.
And while these statistics may be startling and perhaps even a bit eye-opening, they should never deter you from continuing to grow your business or starting a new one. In fact, it’s been said that a life without risk, is not worth living.
But, how do you know what’s a healthy risk and what risks may be potentially detrimental to your business? We can help. Pencils ready?
Know the difference between healthy and detrimental risks:
Healthy business risks are when you consider the pros and cons of starting and growing your own business; risks such as steady paychecks, trusted employees and considering your personal and mental health as you move forward.
Which risk can we help with? When financials are not up-to-date and accurate, taking those risks can become detrimental to business growth. You need the right information in order to assess the right decision when it comes to your financials. You need to know your numbers. Are you profitable? Do you have too much debt? Are your margins too thin? Are you spending too much on payroll? Having access to this information helps you make informed decisions about your business.
You must work with someone you trust.
So, how do you get started on knowing your financials and how they impact and affect your business? Furthermore, who can you trust to help teach and coach you on the most effective ways to keep your financials up-to-date and accurate?
We’re talking about your business, here, and the stability of your finances, so it’s important that you not only have the confidence in your financial partner or firm but that you know you’re dealing with a professional and/or team of professionals that have the education and experience to support your needs.
Here at Keep Financials, we can help. We have all of those things: experience, a team of professionals and the tools and resources your business needs and deserves in order to grow. Let’s get the conversation started.
Don’t be afraid to take risks, just be sure they are the educated, informed and healthy kind. After all, it’s up to you to continue with the spirit of entrepreneurialism.