Low Risk, High Reward: Starting and Growing A Business with Minimal Risk
Contrary to popular belief, successful entrepreneurs do not crave risk. In fact, they strive to minimize it. Bob Reiss, founder of several companies and the subject of a Harvard Business School case study, has writtenLow Risk, High Rewardto share the many ideas he's developed over the past four decades for succeeding through prudent action. In straightforward language, he addresses practical methods for spotting, managing and reducing risks in virtually every facet of business, from developing initial concepts and financing their production to securing orders and preparing for the future. Some suggestions are somewhat obvious--such as using commissioned versus salaried employees, contracting for manufacturing facilities rather than building your own, and thoroughly testing ideas before implementing them. The vast majority, though, deal with risk reduction in more novel ways. Among those he details with specific suggestions: working with suppliers to stretch payments and free up cash; managing products from the start with an eye toward their natural (and limited) life span; focusing on packaging as a means of grabbing initial orders and securing crucial reorders; and vigorously protecting ideas by preventing knockoffs and responding forcefully if they do appear. Current business owners, along with those who hope to join them, will find his advice helpful. --Howard Rothman