Starting a Business

Chapter 4: Starting a Business - Page 4.13

Summary

I'll always remember a talk I had with a man who had spent 15 years trying to make his sailboat manufacturing business work, achieving not much more than aging and more debt. "If I can tell you only one thing," he said, "it is that you should never leave yourself without an exit. If you have no exit, then you can never get out. Businesses sometimes fail, and you need to be able to close it down and walk away. I wasn't able to do that."

The story points out why the U.S. government securities laws discourage getting business investments from people who aren't wealthy, sophisticated investors. They don't fully understand how much risk there is. Please, as you start your business, make sure that you understand how easily money invested in a business can be lost.

If I could make only one point with budding entrepreneurs, it would be that you should know what money you need and understand that it is at risk. Don't bet money you can't afford to lose. Know how much you are betting.

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