Passion-based businesses often get a bad rap. These are endeavors that many people think are doomed to fail. This is mistakenly and usually attributed to the businessperson’s lack of experience, which increases the risks of carrying on with the enterprise.

1. For Passion-Based Businesses:
Reducing the Risks
The Studio Director
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Passion-based businesses often get a bad rap. These are
endeavors that many people think are doomed to fail.
This is mistakenly and usually attributed to the
businessperson’s lack of experience, which increases
the risks of carrying on with the enterprise.

2. Businesses are always subject to risks, which means that passion-based businesses are no
different from other types of trade and undertaking. People who want to make money out of their
talents and endowments should not be inhibited by the fear of failure. To ensure growth and
success, they should learn how to minimize risks and keep them from threatening the business.
Here are some things they need to keep in mind:
Keeping the Eye on the Cash
The cash flow is the lifeline of the business. Realizing this, businesspeople should have the full
picture as far as assets and liabilities are concerned. To minimize risks on these areas, they
should project profits together with overheads. This will give them an idea where their businesses
currently stand. They need to make sure that long-term and short-term objectives are in line with
these factors. Apart from coordinating an accountant, they may use software to keep track of
expenses.
Keeping the Eye on the Cash
The cash flow is the lifeline of the business.
Realizing this, businesspeople should have
the full picture as far as assets and
liabilities are concerned. To minimize risks
on these areas, they should project profits
together with overheads. This will give
them an idea where their businesses
currently stand. They need to make sure
that long-term and short-term objectives
are in line with these factors. Apart from
coordinating an accountant, they may use
software to keep track of expenses

3. Prioritizing Check and Balance
Check and balance are important in managing any type of organization. Business people just
cannot afford to leave a specific set of tasks and responsibilities to a single department. They
should be distributed evenly across different divisions to avoid abuse of power and privileges.
Getting Insurance
Insurance is often at the bottom of some businesspersons’ lists of priorities. If they want to be
practical about it, they should be careful and specific in identifying risks. This will help them get the
right insurance policy and avoid paying fees for unnecessary fees and features.
Businesses, regardless of their type and industry, always come with risks. That does not mean,
however, that businesspeople cannot do anything to keep them at a minimum.
SOURCES:
http://www.huffingtonpost.com/roshell-rosemond/the-balancing-act-your-95_b_5686939.html
http://www.entrepreneur.com/article/224190
https://www.thestudiodirector.com/