For instance, generate a clear and simple idea, then determine what industry or market you plan to target, what type of corporate organization you’ll implement and where your business will be located.
Each is an important decision, but the main consideration when starting a company is how to manage risk. Risk is the heart of entrepreneurship — defined as “the pursuit of opportunity without regard to resources currently controlled.” Risk is the sole determinant whether you will succeed or fail.
Billionaire Sir Richard Branson follows a principle called “protecting the downside,” which means that by looking at any situation and determining all options before making a decision, one can identify the worst case scenario and work backwards from there to find the optimal route forward. Protecting the downside is all about identifying and understanding risk.
Here are five risky steps that will actually help protect the downside of a new company and, counter-intuitively, set you up for success.
