When you start up an online business from your home there's a certain degree of nervousness that comes along with it. Will you succeed? How difficult will it really be? Did you learn everything you needed to know before you got started? Will people really want what you have to offer? Those are important questions, but another question that a lot of people forget to ask themselves is how much risk they can actually handle and what level of risk is acceptable to them. Not asking that question - and not getting a firm handle on the answer - can be a serious downfall for any business. Most people feel that there is inherently less risk in an online business because the cost of starting it up is often lower than a brick-and-mortar style business, but financial risk isn't the only concern.

People risk their reputations, their time, what they can offer to their family, and other things when they create an online business. If they don't market their business well and no one buys from them, they will lose the money that they spent for their Web site, their product (unless they are only offering a service), their advertising, and anything else that they paid for, such as their Web hosting. They might have also paid to incorporate their business, they may have had to buy licenses for their city, county, or state, and some of them have cut back hours at 'real' jobs or quit them altogether in order to try to make their online business dreams come true.

They can be led to financial and professional ruin in a very short time, even if they don't have a lot of ongoing expense and overhead. With that in mind, think about everything that you value when considering an online business. It can be a great way to succeed, to build wealth, and to give yourself and your family financial freedom and security, but only if it's done right. The risk must be an acceptable one before the business is undertaken, and you should take the time to determine that acceptable risk level before starting any business, whether online or off.