When you seek money from an investor, one of the first questions they will ask is, â€œHow much of your own money, and friends and family, have you put into the new business?â€ If you are not willing to put your own money at risk to start or grow your business, there is no reason for them to do so either.
To manage your risk effectively, you need to be an effective entrepreneur. Business Insider takes a look at some of the lessons that entrepreneurs need to learn if they want to be successful.
Find your passion. Entrepreneurs, like Olympians, tend to put a competitive spin on anything they find a passion for, and once they are snagged, they have to win. This passion, while it is your soft inside, is probably the single most important factor in achieving business success.
Get committed. No one truly understands how much they can accomplish until they develop their hard shell of commitment to a goal you really want. The commitment has to not be one day, or someday, but today. Nothing good comes without hard work. In business, that means first put it in writing with a business plan.
Take some risks. Be willing to stick your neck out. The best entrepreneurs always believe their startups will thrive despite the odds. Donâ€™t worry if you feel some fear. Fear is a natural emotion, and fears can actually help us to be alert. Especially, you must not fear failure. People learn more from failure than from success.
Photo by Mish Sukharev