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Dave always wanted to operate his own business but he witnessed some of his builder friends 'go broke' and realized that he has to thoroughly educate himself on the various and real risks involved in operating his own domestic building business. As humans, we are eternal optimists and we can only envisage good things happening when we open up our business. While optimism is an essential component of business success, harsh reality and statistics prove that failure in small business is endemic and the consequence of failure often leads to broken relationships, bankruptcy and the loss of confidence. Starting again with a bad credit rating can be extremely difficult so it is vitally important that Dave and Melinda think long and hard about going into business and seek the advice of experienced and well-worn business people before taking the plunge.
As a consequence of owning and operating his own building business, Dave is exposing himself and his family to risk. As part of a sound and considered approach, Dave should be aware of what his risks specifically are and then how best to mitigate these risks. The imminent risks that Dave will encounter as an owner of a building renovation company should be understood before establishing himself as a self- employed.
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