Risk / Reward

Life gives us an abundance of opportunities to assess risk and reward.  We can drive our cars really fast and feel the power and excitement while risking tickets and car crashes.  Marriage seems to carry a long list of risks, but the simple rewards tend to win out. What about jobs?

We assess job risks with income opportunity, which is why a very risky job like an oil rigger earns a very good income, while a low risk job like a hamburger flipper makes minimum wage. Education levels, location, travel, etc play a part of the risk/reward equation too.

What about going into business for one’s self? There are many risks associated with starting a business, and the lucky few that make it can be very successful. Someone who wants to greatly reduce risk, while still being their own boss might look at buying an existing business.

In this case the risks are reduced because someone has already gone through the start-up phase which is the riskiest phase of the business cycle. The groundwork has been laid, employees are in place and trained, the name and brand have been established, a customer base is in place, policies and procedures are written and being followed, vendor relationships are solid, etc.

The risk in buying a business tends to be more in the buyer’s hands now. Does the buyer have the right mindset to be an owner? Can they be a good leader, handle cash flow, and continue to care for the happy customers? And a big one, will a new owner overcome the day-to-day challenges of ownership to reap the rewards of success? Business ownership is not easy or for the faint-of-heart, but the rewards are fantastic.

Talk to your Apex Business Advisor to find out how to be your own boss.