3 Small Business Ideas for Risk-Averse Entrepreneurs

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There's no denying that starting a business is risky; half of all businesses fail after just five years.

And while there are ways to help offset the risk of launching a business, like taking the time to do market research beforehand, it's also true that some businesses are inherently less risky than others.

If you want to launch your own business but lean toward being risk-averse, here are a few suggestions for you.

1. Consulting

If you've built up experience in a specific industry, you can offer your skills through consulting services to help other companies improve their business. For example, you could use your money management skills to help other small businesses with their accounting or use your marketing experiences to assist companies with their marketing strategy and social media presence.

Companies spend $2 billion annually in the U.S. on consulting services, and the employment website Glassdoor says the average consultant salary is $88,950. There's no guarantee you'll earn that much, but consulting could be good for risk-averse entrepreneurs because you can build the business slowly while you keep your day job.

2. Freelancing

I've been a full-time freelance writer for over a decade, and while it's not without some risk, it's not the terrifying leap I once thought it was. For example, I get most of my writing jobs from a handful of clients who need lots of consistent work.

While it can be risky not to diversify my client base, the clients I have give me the opportunity to write content on a daily basis -- a unique opportunity in the freelancing market.

While that may not be possible in all situations, you can also mitigate your risk by launching your freelancing business as a side hustle to see what kind of traction you get.

There are many different types of freelancing work, and freelancers earn an average of $72,842 annually, according to Glassdoor.

3. Selling online courses

Selling online courses is another good option for risk-averse entrepreneurs because you don't have to quit your day job to do it. It also pays well for those who can get the business off the ground. Glassdoor says the average salary for online course creators is $71,521.

Of course, your individual pay may vary, but thankfully there are established platforms where you can add your course to maximize your chance of attracting customers. This is great for risk-averse entrepreneurs. Udemy and Skillshare offer thousands of courses on their sites and have millions of users.

Both platforms are also free to use and take a percentage of views or course purchases, meaning you won't owe any money unless you're making money.

How to get more comfortable taking risks

No matter what business you start, there will always be risks involved. However, you can reduce the stress of those risks by developing a plan and keeping costs low.

Creating a business plan is a great first step because you can set goals and plan how you'll achieve them. Thinking through a plan, even if you change it later, can give you peace of mind.

Keeping business expenses low can also reduce the stress of risk-taking. Fewer charges on the business credit card mean less pressure to earn a lot of profit, allowing you to grow your business slowly as you test out new products and services.

Remember, starting a business is rarely a risk-free endeavor. However, picking a low-cost business and creating a plan for its success can help even the most risk-averse entrepreneur.

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