“There are risks and costs to action. But they are far less than the long range risks of comfortable inaction.” – John F. Kennedy
Most small business owners tend to avoid taking risks. And you can’t really blame them. If you’re struggling to make ends meet and just scraping by month after month, straying from your path and trying something new might seem like a frightening option.
But when you put everything in perspective, wasn’t the idea to go into business on your own a huge risk to begin with? Leaving the world of regular employment and taking the unbeaten path is incredibly risky.
So when you really think about it, risk is at the foundation, the very core of your business. From that vantage point, it seems silly to explicitly avoid risks when it comes to running your business.
If you’ve been reading a lot of small business blogs or related literature in general, then you have probably come across a bunch of information that tries to guide you in avoiding risks as much as possible.
There’s a lot of information out there about how to reduce risk and safeguard against it. This certainly underscores the notion that most of us tend to have an aversion towards risk-taking.
Of course, taking risks blindly is definitely not the way to go. Evaluating the risk before you take it is something that every small business owner needs to do.
If the risk ends up not paying off, how much of a setback would it be? If the risk ends up paying off, what are the potential gains? Take all of that in consideration before deciding whether or not it’s a risk worth taking.
Planning ahead and taking all possible outcomes into consideration is what leads you to being able to take calculated risks.
If you aren’t in the practice of taking risks, start out small. Taking a small risk and seeing gains from it can give you a boost in confidence, which would eventually allow you to take greater risks and see greater gains in the future.
And on the flip side, if the small risk does not pay off, it hopefully has not done much to set your business back.
It’s also important to take ownership of whatever decision was made, to show your team that you are a brave leader, willing to step outside the box every now and then in an effort to move the company forward.
With Risks Come Rewards
You’ve heard this phrase many times before, and it’s certainly true. Of course, with risks come potential problems as well. But it’s important to always take the good with the bad.
Once you have decided to take the risk, make sure to execute your plan completely. Follow through fully and put your plan into motion as steadfastly and completely as you can. Don’t cut corners and don’t stop half way.
Above all, it’s very important evaluate the outcome of the risk that you have taken, good or bad, and learn from it.
When you take risks, you open your business up to new possibilities and opportunities that you may not have had before. It can inspire you to rely more on your creative abilities. Most of all, taking risks can lead to positive outcomes. Of course, a risk by its very definition implies that failure is also possible.
But failure is a big part of the process of developing a successful business. Through failure, you are able to learn and make better decisions in the future.
Many of us don’t really like to stretch our comfort zones, but many entrepreneurs have basically made an art-form out of it. They often push themselves to learn new skills, try new things, and set bigger goals, which can ultimately open up new opportunities and lead to new successes.
What is your opinion? Please leave them in the comments section below!
“I can’t physically be at all six of my stores all the time, but Humanity is so efficient and convenient that I can easily manage all my locations from literally anywhere.”Troy Pugueda, Operations Manager