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Should you build a safety net?

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Taktik

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Oct 15, 2018
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Hi guys,

What do you think about building a safety net in case the company you are working on fails?

Maybe for clarification, by safety net I mean, for example, the ability to make good money as a freelancer. So if your own company fails, you could just work as a freelancer, so to speak, and earn your money that way for a while. Of course, you can't become a successful freelancer just like that (it's possible, but it's the exception). So you would have to invest some time until you learn the skills and know how to go about it. But then you could have also invested this time in your own company that you want to make.

You could also just take a job if your own company fails until you start the next one. Of course, you could also just start a company alongside your job. That would also be a possibility, where you wouldn't need a safety net, so to speak.

I guess I ask the question because I'm catastrophizing and afraid of failure and possible dire consequences.
What do you think about that?

Thanks.
 
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WestCoast

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"What keeps you safe, doesn't keep you alive"

You can't have two plans.
If you have a Plan B - how do you devote 110% of your life to executing your Plan A??
It's impossible, by definition.

--
Said more plainly: I think you're on the wrong website for these types of questions.
 

Eudaimonium

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Do you have a family / dependants to feed?

Where do you live? What is your community like? What is the government like?

What are your savings and expenditures like?

What is the estimated % risk of catastrophical failure? What constitutes catastrophical failure? Debt? Becoming homeless? Dying? Losing relationships?

As mentioned it is better to only have a Plan A so that you do not lose sight and become tempted by the easier Plan B. Alternatively, you can make A (risky) and B (safe) the same plan, where B builds up to and finances A. etc.

If you live in a first-world country, the risk of catastrophical failure is lower than you think. The perception is skewed, as government (or the powers that be) will scare people through media, that without a government-provided 'safety net' (welfare), or a university education or the scripted regularity of a paycheck-- you would be helpless! This is seldom true.
 

OMJ

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What do you think about that?
Mental masturbation.

You don't build a safety net half way across the tightrope.

Normally you have an income that supports your business until that business can support you.

Entrepreneurship 101.

Read the forum more, this has been mentioned countless times.
 
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woken

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Your example only works if the said business is in the same industry as what you’d be freelancing in. You can’t sell dog food and then become a freelancer in photo manipulation.

That being said,
Normally you have an income that supports your business until that business can support you.
this sums it all up in case you didn’t read the books.
 

ZCP

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what if you determine three things to get you to your end goal, then get them done.
leave fear where you stand. step forward and succeed.

rewatch the scene in the batman movie ..... drop the rope and make the leap!
 

Kung Fu Steve

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Maybe instead of asking "What if it goes wrong?" you start asking the question "What if it goes right?"
 
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biggeemac

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I pay cash for a lot of our expenses and equipment. If the business fails, I can sell off everything and still come out ahead. We run a mostly debt free company other than the real estate, and even that has equity built in.
 

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