While it may sound attractive for an individual to start his own business, there are lot of risks involved in it.
I would advise an individual to get the Expertise – Demand equation right before he gets into a business.
What do I mean by Expertise – Demand equation?
It’s a simple yet powerful way to avoid the failure..
Choose a business where you have good experience and there is a market demand for your expertise. (For example, if you are chef in a restaurant, you can very well start your own restaurant). If you enter into a new business which is highly relevant to your expertise (circle of competence), you get an upper hand in managing it right from the day one.
By choosing a business where there is a year-on-year growth in the market demand, your risk of failure further comes down.