We try to avoid risks everyday in most things that we do. No one wants to take on unnecessary and unwanted risks in any part of their lives, and yet too often we take on risks that we simply fail to see. This is especially true for those entrepreneurs who go into business for themselves.
Starting your own business is in itself a risk. Entrepreneurs go in knowing that no one has guaranteed them that they're going to succeed. All any business owner can do is put forth their best effort and do the things that will put them in the best position to succeed, and that includes insuring against failure.
So what can an entrepreneur do to try an avoid the risks that could sink a business before it's even had the chance to grow? A number of early-stage businesses don't give much thought to their intellectual property, either because they don't think they have much or they don't think it worthy of consideration in the midst of other concerns. But not giving yout IP the attention it requires is a huge risk that can be fairly easily mitigated. Without the trademarks, copyrights and patents that you need for your intangible assets, you could wake up to find that someone has stolen them, leaving you with a difficult path to seeking legal recourse.
The matter of business insurnace is one that also slips through the cracks of the entrepreneurial mind. We take care to make sure we have insurance for things like out health, homes, and cars, so why not for something as important as a buisness? Having the right type of insurance for your business will give you peace of mind and help to keep your day to day operations going should anything happen, and can prevent having to pay out-of-pocket for potentially costly medical or repair bills.
When it comes to your dealings with those you work with, and those who work for you, contracts are the thing to have to minimize your risk. Having solid contracts with both employees and contractors allows you to outline what both parties can expect from one another, with no ambiguity. Don't rely on handshake deals for your business - make sure that you have written agreements to help you avoid legal entanglements down the road.
Even if you take the necessary precautions, there is still the chance for mistakes and failure. No business can root out entirely what is inherent in the enterprise of business ownership. But you can help insulate yourself against some of the bumps and bruises you face along the way, and that's the most anyone can hope for.