Your business might be your dream but to someone who’s been around the block it might just be a waste of time. Most likely when you started your business you were optimistic, you had enough of your day job and all you thought about was how much money you can make.
Every idea can be a good idea
Seasoned business owners and venture capitalists know that any idea can be a good idea they care about the planning and implementation. For example, while you are looking up they are looking down, to what might go wrong in your business before it even gets off the ground.
If you have even seen an episode of shark tank you would know that every business idea is picked apart and every possible downside is calculated before the contestant gets an offer.
They explain that they don’t think that the contestants can’t open their own business they just didn’t do their homework. Why do they do it? After all, they are still taking a risk, no one said they will profit 100% of the time.
The stop loss
They are implementing something called a stop loss. A stop loss is the amount of money they are willing to risk to get a certain level of profit. They take into account the things that might go wrong and how much money they are willing to lose.
Why use a stop loss?
Not all your ideas will eventually become million dollar companies, but you should keep trying. A stop loss prevents you from losing more than you can afford, something that can stop you from taking advantage of other opportunities later on.
Whan starting a new business set yourself a limit to how much money you are willing to lose to try it out. If you hit that number just cut and run, this is not something you should be emotional about it’s just an idea you tried. Next time you try something you will have more experience and will do a lot better.