Taking Intelligent Risks in Business
Reasons it could pay off
Do you consider yourself a risk-taker? Let’s take it one step further and ask: do you consider yourself a risk-taker in business? The latter might result in a slightly different answer than the former.
Entrepreneurs know that every business venture comes with a certain amount of risk. However, most of the risk typically occurs during the early days of the business. Once the start-up phase is over, many entrepreneurs stay as far away from risk as possible. But as pointed out in the above video, avoiding risk is not always in the best interest of the company.
By taking smart risks, businesses have the opportunity to increase their performance and even outpace their competition. To do this, a business should weigh the potential impact of the risk against the profitability it could gain if the risk is successful.
To take a risk in business, a person has to be able to overcome his fears. A certain amount of doubt is to be expected, since it can help business owners analyze and evaluate if the risk is worth taking. On the other hand, being overly fearful will only hold a business back from its full potential.
In spite of the doubtful and fearful side of risks, there are also several incentives for taking them. If a business takes a risk, it has the opportunity to increase in profits, business, and demand. These perks could then lead to even greater opportunities.
BusinessWeek even released a poll last year that revealed 54 percent of all the respondents believed in risk taking over stability. The bottom line is, sometimes the best way to get ahead is to take a risk. Are you ready to go out on a limb?