It’s National Entrepreneurship Week. Many people don’t know it, but historically, it’s small business – not large companies – that creates jobs. Of every three net new jobs created, two of them are created by small businesses. They are the engine of the economy.
We saw a great article over at Bloomberg by innovation consultants Michael Maddock and Raphael Louis Viton. They note a new phenomenon: Large companies are hiring professors to teach them how to innovate. The authors assert that it’s misguided:
Our President got a fat lip while playing basketball over the weekend. Fortunately, it was a minor injury which won’t impact the President’s ability to do his job. Although, he may talk a little funny for a while!
But it got us thinking about work and our spare time activities. For example, a hair stylist we know broke her leg while skiing. She wasn’t able to maintain her full schedule for over a month.
So entrepreneurs need to be particularly sensitive to this issue. Of course, as we learned from President Bush, even eating a pretzel can be dangerous.
While BIGG goal-getters certainly live a full life, you have to be conscious of the risks. Just like entrepreneurs manage risk at work, think about risk when you’re at play.
Here are 4 tips to keep a fat lip from leading to a skinny pocketbook:
1. Put safety first Just because there is no OSHA for our activities off-the job doesn’t mean they’re any less risky! No matter what your hobby is, be smart about it.
2. Maintain your financial safety net Build up your cash reserves so you can go for at least three months without income. Entrepreneurs who have more erratic income probably may want to bump that up to at least six months.
3. Plan for it What if you weren’t able to work for a period of time? Who would be in charge of your company? If you’re a solo entrepreneur, who would take care of your clients?
4. Purchase disability insurance This one’s often overlooked, but the odds of not being able to work for a period of time make it worth checking into. The link above is to an independent organization that’s a great resource to help you with this.
As the entrepreneur of your life, think about the risks you face and find ways to keep a fat lip from leading to a skinny pocketbook. It leads to BIGG success!
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