Risk Management Checklist for IT Startups and Freelancers
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.