Damage Control

Entrepreneurs who try to remove all risk will take no chances and, as a consequence, generate no rewards for themselves. On the other hand, entrepreneurs who risk everything by, for instance, trying to create new industries where they can play central roles, are setting themselves up for either disastrous failure or incredible success, Bryan notes. Somewhere in between these two extremes is the playing field for most entrepreneurs, but exactly where your spot on that field is depends on your own familiarity advantages and risk management skills.

In the next 20 years, Bryan believes, these risk management techniques will become universal among successful businesses. While small businesses may do it less formally, they will still do it, he says. "Is this practical for most people?" Bryan asks, rhetorically. "It's going to be practical for the winners, because this is really what differentiates successful small businesses."

This article was originally published in the November 1999 print edition of Entrepreneur with the headline: Damage Control.