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HAVE A PLAN TIPS FOR REDUCING FINANCIAL RISK AS A STARTUP FOUNDER BY DON RYAN CENTER FOR INNOVATION
Starting a business is inherently risky, but if there’s one thing you don’t want to take a chance on as a new entrepreneur, it’s your funding. According to the U.S. Bureau of Labor Statistics, 20% of new businesses fail within the first two years of being open, 45% within the first five years, and 65% within the first 10 years – usually due to financial reasons. Sometimes you must spend money to make money but developing smart financial strategies can help you mitigate or eliminate high-risk areas. Reducing risk doesn’t just prevent you from taking on more debt. It can also reduce financing costs and the amount of equity that must be given up to attract investors. Here’s how you can reduce your financial risk as a startup founder.
The Don Ryan Center for Innovation provides startup and growth assistance to Beaufort and Jasper County entrepreneurs. Learn more at donryancenter.com.
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