There is one crucial principle that underlies everything about starting and running a business. On Wall Street, smart traders look at one thing above all else when deciding whether to purchase a security, or not: risk! Those traders look for any number of ways to reduce the risk of owning a particular stock, bond or derivative. This allows them to limit potential losses and maximize hoped-for gains. In a new business, the initial risk is the money (investment capital) spent before one even engages their first client.

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