Successful entrepreneurship involves taking risks in business. If you don’t embrace risks taking, you may want to rethink being a business owner.
Many entrepreneurs have taking risks in businesses to ascertain their level of achievement today. This however, does not mean going into business blindly and then expecting great results. Risk taking in entrepreneurship involves careful planning and hard work.
5 Things to know about taking risks in business
1. You will no longer have to ask “what-if”?
Founder and CEO of Amazon Jeff Bezos have been quoted as saying, “I knew that when I was 80, I was not going to regret having tried this…I knew that if I failed I wouldn’t regret that. I knew the one thing I might regret is not ever having taking risks in business. And I knew that would haunt me every day.”
Nobody can really be sure if risks in business will pay off, no matter how careful survey and analysis is done, But this should not stop you from doing so. If you want to succeed, taking commiserate risk is necessary. According to a quote by Frederick Wilcox, “Risk taking in business is a key component of successful business. You can’t steal second base and keep your foot on first.”
2. You learn with experience
Taking risks in business may not pay off all the time, but an optimistic risk-taker will always look at failure as an opportunity to learn. Social Media Examiner owner Michael Stelzner said that the willingness to experiment with new ideas is key to business growth. As he puts it, “nothing ventured, nothing gained.”
Failure will teach you how to think and plan strategically. Just remember that not all risks in business are good ones, and when you fail, learn from it and move on.
3. Innovation and opportunity are tied to taking risk
Innovation involves changing how people do things. Combine that with the fact that customers have constantly changing demands and you have consistent opportunities for new business. It is about sharing and teaching what we know and putting new ideas into practice as a constant state of progress.
Taking risks in business is accepted by entrepreneurs as a cost of opportunity and innovation. They know it cannot happen if you will not accept the risk that your undertaking might fail. The level of risks taking may be lessened, however, if you make all possible calculations and evaluate which options are best before proceeding to the next step.
4. Those involved in taking risks in business already have a competitive advantage
Since most people tend to avoid taking risks in business, those who are brave enough to take risks already have a competitive advantage. Similar to the concept of a first-mover advantage, when most individuals stay away from taking risks in business, that means less competition for risk-takers. This means if you’ve found a worthwhile opportunity, and no one else has jumped on it, you’re the only business reaping the benefits and communicating with customers.
Always keep your competitors in mind when embarking in risk. If you don’t take the risk they may opt to do so instead. But as long as you understand the potential return in taking risk, you can rest assured knowing whether it’s a worthwhile risk or not.
5. Taking risks in business could be more rewarding
Many people are afraid venturing into risk, but a study on taking risks in business revealed that there is a link between willingness to taking risk and personal satisfaction. You won’t look back and dwell on what could have been or the fear you felt when facing uncertainty. Instead, you know what was on the other side of that “what-if” scenario and can feel proud of the fact that you support the idea of taking necessary.
The comparative benefits of taking risks in business doesn’t mean you take risks at every turn but, instead take calculated risks that have been thoroughly considered. Avoiding unnecessary risk and saying no to new ones based on past experiences can be just as satisfying. Finding the right balance and taking risk when it makes sense, even if there’s a chance of failure, is a sure way to find success and satisfaction.
Taking risk is the sure way through which entrepreneurs has the opportunity to grow and succeed in business.