Start Small Business That's Risky?

Dave gives Ben some advice and warnings about opening up a small business now that he's debt free except for the house.

QUESTION: Ben is considering a career move to a new small business.  He’s debt free except $30,000 on the house, he has thousands in savings, and is funding retirement.  He is passionate about this new job.  Even if it’s risky, should he make the move?

ANSWER: You’re right to pursue a career path that you love.  You need to be passionate about what you spend your life doing.

You need to consider that partnerships are dangerous and chances are you won’t be friends when all is said and done.  You should let your friend be the sole owner of the business while you get a percentage of the net profits.  That alone will make this situation a lot less risky.

You should also think about the field you’re going into.  With computer technology, you have to stay on top of the trends and the fast pace.

Analyze all the risks and don’t tie yourself to a sinking ship, but I’d say go for it!