Recently while working on a loan request for submission to our Loan Committee, I thought about the inherent risks involved in staring and growing a business. “There is an old saying that good lawyers run away from risk, while good businessmen run towards risk”. Risks, in and of itself, can be a good thing if we avoid the bad risks, while actively seeking and managing the smart risks.

The challenge is to avoid the bad risks, while actively seeking and managing the smart risks. There are no guarantees in business, but it pays to learn from the experiences of entrepreneurs and business experts who have gone before you. Below are a few of the risks that the typical lender/investor look for in new startups:

1. Product risk-Decide what you are selling;
2. Market risk-Knowing your customer and why, how and where they buy related products is a very important risk factor to assess before launching your product;
3. Financial risk- Make sure to identify key business milestones and schedules that clearly identify the points in time when equity or debt investments are necessary to reach the next growth level;
4. Team risk-Make sure that you have a great team to help you continue to assess risk and help develop and implement business strategies

For additional information about loans, lending or small business planning, especially in Philadelphia, please call Calvin R. Tucker at 215-452-0100 or email me at Visit WPFSI’s website at

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Calvin Tucker

Calvin Tucker is the loan officer for WPFSI. His diverse experience ranges from small & large businesses, commercial & mortgage banking, business development, credit analysis, management, origination, servicing [domestic/ international], and more.