Principle 2 — Don’t Commit More than You Can Afford to Lose

Simon Bridge and Cecilia Hegarty
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Simon Bridge: University of Ulster
Cecilia Hegarty: PLATO EBR

Chapter 9 in Beyond the Business Plan, 2013, pp 89-95 from Palgrave Macmillan

Abstract: Abstract Consider the downside risk and don’t at any stage commit to an uncertain venture more than you can afford to lose. The future is uncertain and, in any case, it has been said that enterprise is spelt R-I-S-K. Some people try to quantify the risk and reduce the uncertainty through market research, but that can be expensive and, as Illustration 3.3 suggests, rarely works. Saras Sarasvathy found that the ‘expert’ entrepreneurs she interviewed distrusted it and revealed ‘a profound distrust of attempts to predict the future’.1 So, if the element of risk remains, the sensible new venture explorer will plan accordingly.

Keywords: Market Research; Business Plan; Downside Risk; Income Stream; Inevitable Result (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-33287-5_9

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DOI: 10.1057/9781137332875_9

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