By Dez Duran-Lamanilao

Some people find their passion early on or late in life. Upon reaching this state, they begin to formulate an idea, nurture it, and when they think they have what it takes to reach their goal, they venture into the world of business. Some plunge head on with expectation and hope that it will be a success. Take time to carefully plan everything before taking a leap. These two groups have something in common. Apart from that one great idea, they probably possess the information, passion, and determination, not to mention the needed capital as well as resources, to start a business.

Whichever group you belong, it is not as simple as it may seem. According to the 2016 Kaufman Index of Startup Activity, despite the positive trend, startup activity in the United States is still lower than what it was before the Great Recession decline.

The Index uses three component measures:

  • The rate of new entrepreneurs
  • The opportunity of share of new entrepreneurs; and
  • The startup density of a region

The Kaufman Index is not alone in its findings. A majority of statistical reports claim that more than 50% of startups fail in their first four to five years. Key causes of failures include incompetence, lack of experience, mismanagement, market and product/service problems, and diminished capital.

Dealing with these complexities, however, should not prevent you from working hard and achieving that dream. As you begin that journey, take extra precaution in protecting your business with these key reminders:

  1. Research about your competitors, target market, and network.
  2. Seek the help of a lawyer and an accountant for your legal and accounting needs. A business expert or consultant can also outline the things that you may have missed during the planning stage.
  3. Plan your exit strategy. If all else fails, shield the business from danger/damage as much as you can without sacrificing the well-being of your employees, suppliers, and everyone involved in the business.

Preparing for the possible risks associated with your venture is a wise choice every businessman should be aware of. Part of that process is getting the right insurance that should be a perfect fit for your organization. Let an expert guide you in your decision so you will have one less item to worry about.