I don't think entrepreneurs should be lazy or blind to risk; rather, they should use strategy, options and flexible arrangements to eliminate, minimize, or tran

I don't think entrepreneurs should be lazy or blind to risk; rather, they should use strategy, options and flexible arrangements to eliminate, minimize, or transfer risk. Big companies didn't want to handle fraud for online payments - Paypal founders figured it out. The OP could have brought the employee on as an independent contractor. Moreover, forming a corporation would help to limit the risk of non-delivery with the $400k contract.