Let's look at how the Internet, combined with the Lone Wolf approach to solo business, allows the entrepreneur to control and greatly minimize the risk of creating an owner operated small business.
Risk #1: You could quit your job to start a new business and not be able to get it back if your business failed. The Lone Wolf approach doesn't require that you quit your job.
You will need to spend time, a considerable amount of time, on your new business; but since it's operated from home (or wherever you have Internet access) you can work on your business before work at your regular job, after work, at lunch, at night and on weekends.
If you ride the bus, or train, or carpool, you can even take advantage of the commute time. Yes, it will be challenging, but removing the risk of losing your paycheck, and insurance, and 401K is well worth the inconvenience.
Risk #2: You could severely cramp you lifestyle if the new business required more time to operate than you expected. Creating your business will require some time. It would be great if you had a week or two of vacation (or Christmas holiday) that you could dedicate to a concentrated effort at the outset.
If you find that you are too constricted by the time your business is taking out of your day, you have the option to figure out a way to still run the business, but in a more efficient manner. The Internet allows you to use all the automation tools so that your personal time is leveraged to the max.
Risk #3: You could risk losing all your company health insurance benefits, your life insurance, and your 401K. We've already discussed the idea that you don't have to quit your job to create your business.
Also, think about this: there are insurance and savings plans galore that cater to the self- employed. What if you actually got better coverage or saved more than you do right now because you developed your own plans that met your needs?
Risk #4: You could put yourself at the risk of bankruptcy if you invest all your money in the new business and it fails. The Lone Wolf strategy doesn't require that you invest your savings; in fact, we suggest conserving your cash. Put as little into your new business as you can get by with (maybe a few hundred dollars to get set up?)
Granted, we can't take away all the risk of your business failing - that could happen to anyone at any time. But we can control what you might lose if the business goes down. There will be no need for bankruptcy. You could lose a few hundred dollars and a bunch of your own personal time that you've invested in your business. That's it!
Risk #5: You could spend years struggling along in your own business until you finally have to close the doors. You would lose all that time.
How do we control the risk of you losing a lot of personal time?
Simply by setting your business up in a niche that allows you to do the things you love in your civilian life. If you love to travel to Hawaii, for instance, and your business is all about the things to see and places to stay in Hawaii, will you really regret the time you spend on your business if it doesn't pay off like you'd hoped?
Risk #6: You could start a new business in the wrong niche, at precisely the wrong time, or just when a powerful competitor enters the same space. The Lone Wolf approach is built upon, among other things, adaptability, speed to market, and extreme targeting.
If you find you are squeezed out of a particular niche by a strong competitor, it is very likely that you'll be able to quickly modify your focus to a related but different niche. There is also the possibility that you can simply dig deeper (become more specialized) so that your competitor is no longer occupying the same space.
Either way, or even if you give up the niche and find another, you won't be losing your shirt. You'll have experience under your belt in the Lone Wolf method and you'll be able to quickly adapt to a new subject.
Risk #7: You could become a small business owner and find out later that you hate the pressure and daily routine of the job. You will probably be able to gauge your suitability for this business model within the first few months.
Yes, there is a risk that this might not be your cup of tea. So what? What have you lost besides a small amount of money and your time spent in a pursuit that you love? If you aren't willing to risk those, I would suggest you look for another way to make money.
Is there a better way to control the risks of creating and operating a small business than what we've suggested here?
Yes, you could have a rich daddy that will set up and finance your entire business, run everything without you until there is no question that the business makes money, and then plop you down in the ownership spot and require nothing in return. If it doesn't work out, he says, "That's OK, I'll fund your life anyway."
I guess that could happen. It won't happen to me. If it happened to you, I'd say there's a very good chance your business will fail.
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