If you want to be a successful business owner, you have to be willing to take risks. After all, ‘you’ve got to risk it to get the biscuit’, right? But how much risk should you take?
Well, it’s not really a question of ‘how much’ as it is ‘what sort’. You see, there’s ‘good risk’ and then there’s ‘bad risk’.
Bad risk = left to chance with either action or inaction, this is a gamble. With a roll of the dice, everything is on the line. As a rule, risk takers are not successful because they leave it up to chance.
Good risk = calculated steps are taken to minimise any fall out should something go wrong.
Every single great entrepreneur takes calculated risks, and you can too. Ask yourself this:
1. How can I do this cheaper (or with someone else’s money)?
2. How can I do it faster? (so I don’t have to invest as much time) and
3. How can I do it better than I had initially planned?
It can be tempting to turn to your biggest asset in cash: the equity on your home loan. Business loans are hard to get across the line, especially if you’re a new business with little to no trading history. But securing your equipment against your home is a risky move.
In our industries, with suppliers often paying notoriously late, or projects interruptions or delays, it can wreak havoc on your cash flow. And cash flow problems is the number one reason why small businesses fail.
Imagine having to tell the kids or your partner that the family home was gone because your great idea didn’t work out? We know your idea is great, but sometimes stuff happens and it just doesn’t work out the way you want.
Calculated risk, on the other hand, is what every single great entrepreneur does. Forbes writes about it, Richard Branson of Virgin champions it, leading start-up businesses such as Dropbox and PayPal embrace it.
You too can use calculated risks in your business decisions to minimise risk and dramatically improve your chances of success.
Using GoGetta to fund your equipment is a calculated risk, and a smart move. Here’s why:
• The only security up for collateral is the equipment you’ve chosen to fund, meaning if your business falls over, you only lose the equipment – not your house, car, etc.
• The short 12-month agreement gives you total control and flexibility in your business, so you can diversify your offering, trial new equipment and preserve your working capital
• Flexible and affordable funding solutions are off balance sheet and 100% tax deductable*, making it easy to budget for, kind on your cash flow, and won’t affect your borrowing ability
Often, if you’ve got a good idea, industry experience and show you can get the job done, we’ll support you. Why? GoGetta is a risk-sharing model, and we provide the means for you to minimise the risks associated with running a business.
You take a calculated risk with your business and we take a calculated risk with you. The process will be easier. You’ll most likely get your equipment faster, which means you’ll be up running your business and living the dream soon. It’s our business to build your business.
If you’d like to learn more about the risks of drawing on your home equity to purchase business equipment, download our four-page brochure.
*GoGetta does not provide legal, tax or accounting advice. Please seek professional advice from a qualified person.