Risk Management Checklist for IT Startups and Freelancers

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At the outset of this whitepaper, we looked at three statistics that show what the typical IT startup looks like:

  • 76 percent of small IT businesses operate from the owner's home.
  • 64 percent are single-person businesses.
  • 42 percent earn most of their revenue from one major client.

Each data point reveals a financial risk:

  • Working from home means you have to protect your time more carefully.
  • As a one-person business, your company will have to be more proactive about new business opportunities.
  • If you get too much revenue from more than one client, you'll need to diversify your client base.

If You Work from Home…

  • Segment your time to ensure adequate focus on tech and business tasks.
  • Create separate spaces for your work and living areas.
  • Make time for the beneficial distractions that happen at work.

If You Run a One-Person Business…

  • Seek out professional development opportunities.
  • Find professional organizations that offer discounted classes.
  • Engage with your local tech community online and in person (through tweetups, meetups, etc.).

If You Rely on One Client for Most of Your Revenue…

  • As a goal, try to have no more than 10 to 25 percent of your revenue come from one client.
  • Don't assume that your best clients will be there forever.
  • Actively grow your business's client base.
Keep growing your network, your skills, and your client base for long-term success.
70% of businesses raise prices or cut hiring when sued