There are several ways that entrepreneurs can share risks:
Equity Sharing: Offering equity to investors and co-founders can distribute the financial risk and reward. In return, investors provide capital and sometimes strategic guidance. Partnerships: Forming strategic alliances with other businesses can help share operational and market risks. Insurance: Purchasing business insurance can mitigate risks such as property damage, liability, and loss of income. Contracts: Well-drafted contracts with suppliers and customers can clearly outline responsibilities and share risks associated with the delivery of goods and services.