Starting a (low risk/ low cost) business is LESS risky than working for a company.
Side note: all entrepreneurs should first start a low cost/low risk service business to generate cash flow and learn about selling and delivering service.
Once the basics are mastered, then it may be time to lever up, raise capital go for something "bigger".
Back to risk and entrepreneurship.
Imagine a sales job offer of $40K + commission.
That sounds much safer than starting a business with no immediate income, but is it?
No, because Company X is not going to keep a salesman that cannot sell employed longer than 3 or 4 months.
(see Frank Slootman discussing A, B, and C players).
If the salesman decided to start his service business, he must sell or he will not earn any money.
Early-stage companies are in a constant battle between growth and staying alive.
I’ve made (and make) several mistakes, here are 6 to avoid:
1. Wasting time on raising capital too early.
Win customers, prove your business model, print profit and maybe you’ll be lucky enough to never need outside capital. Many early-stage hours wasted here.
Investors do not want to invest in pre-revenue startups.
2. Credit cards
Financing marketing campaigns rarely works out well – they need time to optimize. Also, the SaaS recurring fees add up (and most products aren't as good as advertised).
The formula for a great beginner business model in 2020 (and beyond):
Low Expenses + Recurring Payments + Big Market
This took me 4+ years of running businesses to figure this out. Hopefully this saves you time - your most valuable asset...
Investing a lot of (or any) money into a new company is not realistic for most beginners in 2020. The good news for you is that you need about $500 to get started.
Pro tip: do not waste 6 months asking banks for loans you will not get and certainly don't need.
Low expenses: gives you two very important things.
1.The ability to get started
2.The ability to keep going
Without these two freedoms it's not possible to win in business. Winning takes consistent action over long periods of time.