Feras Alhlou breaks down what can go wrong when you start a consulting business: losing your capital, owing creditors, early exit costs from leases and contracts. Recessions, pandemics, and tech disruption make these risks worse. The advice is to take calculated risks, not reckless ones.
What business risks do service businesses have? You could lose the capital you've invested owing money to others or investors. Other risks are indirect, such as having to prematurely get out of leases, contracts, and partnerships, which can cost you money depending on your agreements. These business risks are usually amplified by unpredictable circumstances such as a recession, a pandemic, war, and technology disruptions, among other things. Risk is part of business, so don't be reckless, but get out of your comfort zone.
