What are some of the major risks in running a business?

There is no such thing as a business venture without risk. The risks involved can come in many forms, all of which translate into the possibility that you could end up going out of business and lose all of your investment (and possibly much more).

All of these risks only underscore the need for proper planning before you go into business. This planning should include using the right business entity to shield you from the potential liabilities of operating a business.

Beyond all these issues, it is also extremely important for all business owners to know that they can't know everything. By definition, business is always a risky venture. The best way to quantify the risk is, when appropriate, to rely on other people for advice and consultation. Every business, for example, should have a working relationship with a lawyer, an accountant, an insurance agent and a banker.

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