When you start your own business, how do you take risky decisions? When you make a
decision it is important to reflect upon – the risks and the possible consequences of
taking those risks. But, stepping out of our comfort zone can indeed unlock new vistas &
possibilities that we couldn’t imagine in our wildest dreams!!!!
Taking risks is indeed taxing and nerve-rackingl. Most people tend to avoid risks when
possible, because toeing the line is often safer than jumping into action. But most
successful entrpreneurs got to where they are today, because they were willing to take
risks. So if it was launching a product or service that nobody else thought would work
or investing money where everyone considered a loss – it does need great courage of
conviction. Still, taking risks is intimidating, especially for new entrepreneurs. But it’s
more complicated. We all want to make the right decisions and this can create a lot of
anxiety. But to get ahead of the game, it is a necessity.
To feel more comfortable taking risks to make more informed risk-based decisions, you
have to keep some things in mind.
Risk-taking is inherent in the entrepreneurship universe
Entrepreneurship is fundamentally linked to risk-taking. In case you aren’t prepared to
take risks, you might as well not step into an entrepreneur’s shoes. Very often, you may
need to invest some of your personal capital into a growing business; you may stake
your reputation on an unproven idea; plus, you will also have to sacrifice the steady
paycheck for many months.
And from there, every action you take or any decision you make carries some small risk
like – your lead generation strategy might fail, your new hire might leave in a month,
your new approach might irritate one of your best clients, and so on. Once you have
accepted ‘’risk as a part of the package, you need to be ready for that as you enter the
entrepreneurial world.
Know all the facts regarding your business
Gather all of the facts and necessary information that impacts your business. This is
important, because you do not want to miss critical information that could make a
difference in how you run your business. Understanding how your competition is doing business is very important. Finding ways to improve customer satisfaction is another
example of knowing the facts of your company. A business owner can interact with
employees and customers to get the necessary information and it is also important to
keep updated on all important business reports and the media coverage of your
business.
Focus on the results
Dwell on what exactly you want and consider the possible outcomes of your decision.
Business leaders need to focus on both short-term and long-terms goals- regarding all
aspects of their organisations. For instance keeping the company’s financial statements
up-to-date is very important. Keeping a tab on your employees’ morale is another factor
that determines the direction your company will take. By scrutinising ways to improve
how to do business will go a long way in accomplishing your business goals and
vision/mission.
Relax & stay on course
Refrain from trying to do everything all at once. Take a break and relax! Try to do
something that will make you feel more relaxed – to de-stress. You will definitely gain a
fresh perspective on your current situation.
Managing your own business is about handling a series of ongoing business decisions.
Don’t put off important decisions. And, don’t worry about your past mistakes. Just keep
focusing on what is best for your company. If your business is going in the wrong
direction then you need to stop – re-evaluate how you run your business.
Learn from your mistakes and re-evaluate
If you had attempted to get into an incorrect business then, the next step is – to learn
from your mistakes and move ahead from there. Learn what you did right and learn
what you did wrong. For instance, your company fixes a marketing plan for a certain
product, but don’t get the expected results in terms of sales and customer satisfaction.
When such a thing happens, learn what went wrong. Finally, you can use this
knowledge the next time you start again and you plan to market your products or
services!
Understand that ‘risk’ is a differentiator
Some risks offer the promise of higher value and some risks could make or break your
business. But there’s one key element all risks have in common: they are definitely,
differentiators. Normally, most people are not willing to take risks. So, the risk-takers
really stand apart in a crowd. And, it is obvious that entrepreneurs and businesses that
stand out are those that have taken a shot at ‘breakout success’. Even if you end up failing, there will be lessons learnt and it might open up more opportunities for yourself –
just because you were willing to stand out and break away from the norm.
It takes time to get to know the complexities and nature of risk, and even more time to
get comfortable taking them. Focus on the known factors and understand that failure is
never the end of the road!
Avtar Madan
Himanshu
Shree Lahiri
