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iQuestions Faculty, Ron Price 
 
 
Question: 
 
I've thought about starting my own business. How do I weigh the risk 
versus reward with the security of working for a solid company? 
 
Answer: 
 
So you have this dream to start your own business, but you’ve got a 
good job with a secure company already. How do you go about 
determining when it’s the right time for you to jump? 
 
The first and most important thing is to build a plan. Don’t just jump 
because you feel like it. You’ve got to have a plan and you probably 
ought to get council from other people. 
 
So number two is to get people to advise you, to take a look at it and 
tell you whether or not they think it will fly— people who you admire, 
people who you respect, people who you’ll listen to instead of just 
rejecting whatever their advice is. 
 
The third thing is to make sure you have the capital necessary to 
execute on your plan. What I mean by that is that you’re not going to 
have to pay yourself for a while, that you’re being realistic about how 
long it’s going to take for this new business to be profitable.  
 
Usually I say people need to have a minimum of six months of savings 
so that they could live without any income at all for at least six 
months. Some businesses are going to work for three years before 
they break even and start making money. 
 
 
 
The number one reason why businesses fail today is because of 
undercapitalization. Meaning, they don’t have enough money going 
into it in order to grow at a normal rate.  
 
When we put ourselves under financial pressure, that’s when most of 
the bad business decisions are made.  
 
So get a great plan, get good advice, and make sure you have the 
resources to be able to do it at a reasonable pace, and not be the 
superman or superwoman that does it like nobody else has. 
Price -2- 
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