How much risk determines whether to start or continue a business?

That may seem an odd question. After all, wherein lies the risk of starting a new business, if not with money, and how much? And in fact, there is a start-up investment, but in the case of most micro-businesses, start-up financial costs are generally minimal. The funds needed to buy a laptop, a router, and a printer, are  more often than not, less than $1,000. You will likely need some software.

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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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