For Subscribers

How To Launch a Business While Minimizing Risk

There are no guarantees in business, but take these steps to set yourself up for success.

learn more about Adam Bornstein

By Adam Bornstein

Federico Gastaldi

Opinions expressed by Entrepreneur contributors are their own.

Q: Before I launch my business, how can I set myself up for success while limiting risk? -- Jack, Portland, Oreg.

If you obsess about making sure your business won't fail -- rather than figuring out how to make it succeed -- your focus will be in the wrong place. Fear doesn't get you far in entrepreneurship, so it's best that you keep your eyes on the prize.

Still, you can plan to limit downside. That begins by following the first rule of business: Understand your audience. Some researchers believe that more than 20 different factors -- from time of day and culture to self-perception and mood -- can influence buying behavior. Maybe that's true, but don't drive yourself crazy trying to track it all. You don't need a Ph.D. in psychology to sell a product or service. However, you do need to understand the personality of your target buyer. Who are they? How does your company help them? How much money do they make? What trends influence them? What do they read, watch, or listen to on a daily basis?

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, get access to a ton of exclusive content and resources that will help grow your entrepreneurial mindset. You’ll find:

  • Exclusive content from our network of today’s leading CEOs and business strategists
  • Receive our flagship Entrepreneur Magazine - free!
  • No more ads, and get access to the Entrepreneur+ homepage
  • Free E-books written by our staff and other industry thought leaders

Related Topics

Starting a Business

How to Manage Cash Flow for Your Home Pet Business

The new book, 'Start Your Own Pet Business,' explains how to manage critter-based cash flow.

Living

Invest in Yourself: 10 Things Every Working Woman Should Do This Year

When striving for success, it is easy to forget about your mental and physical health. But without health, you cannot fully succeed. Follow these ten lifestyle strategies for success in your personal and professional life.

Business Ideas

How to Make Thousands of Dollars on the Side As a Virtual Assistant

Apply your skills and experience to create a lucrative virtual assistant side hustle or full-time business.

Business News

Mark Cuban's Grocery Store Hack Will Help You Score Cheaper Produce

The billionaire talked about his early days in Dallas when he was strapped for cash.

Innovation

The Greasy, Glamorous Rise of Mascara

You won't believe the grimy gunk people used to smear on their eyelashes -- and still do.