We take risks every day in all aspects of our lives and risk-taking is important in business. In order to sustain consistent growth, be prepared to take on the risks and challenges that will help your business be successful.
Taking a risk requires careful evaluation and calculation. This will allow you to see if you are able to manage the risk and if your business is able to take on any challenges this risk may bring.
With my experience helping CEOs mitigate and evaluate business risks, I’ve come up with a list of 5 risks every business owner will face when growing their business:
- Sacrificing personal capital:
While some business owners are able to begin their journey by relying on external funding, many have to use their personal funds. Using your own funds may be a necessary risk that may be influential to the growth of your business.
- Putting trust in your employees:
It is impossible to do everything yourself. At some point in your business’ journey of growth, you will need to rely on employees. Putting a large amount of trust in employees is a risk you’ll have to take to move your business forward.
- Trying something new:
If you haven’t seen positive results from the way you’ve been running your business, try something new. Develop a new strategy, consider your product/service line – thinking outside the box and not being afraid to explore new possibilities has proven successful for many businesses. Change can lead to success.
- Putting yourself out there:
Get out there, meet people, and connect – not easy at first, but this is the best way to make valuable connections and grow your image as a business and as a business owner. Attending events, working the room and being active on social media are all methods of making connections and, while they can initially be intimidating and unfamiliar, are sure to produce short and long-term gains.
- Investing back into the business:
Even if your business is not as profitable as you may like it to be, don’t hesitate to invest back in to your business, knowing it will benefit the wealth and status of your business in the long run.
Risks shouldn’t steer you away from success but are necessary obstacles in the bigger picture. There’s no way to completely avoid risks but preparing for and recognizing them will help mitigate their impact. The biggest risk in business is not taking one at all.
What risks have you taken as a business owner? Did the result look like you expected? I look forward to an interesting discussion!
Recognizing and assessing business opportunities is an integral part of being a business owner. Although opportunities can help grow and develop a business, taking advantage of the wrong opportunities can be detrimental. Many of the discussions I frequently have with my members revolve around assessing opportunities and determining if they should be acted upon.
The Importance of Qualifying an Opportunity
Considering all angles of a situation will allow you to see the full picture. Business owners can find themselves focusing only on the potential success of a venture and they often don’t take the time to qualify the opportunity. Use caution as there is a tendency to “jump” at an opportunity. Be sure to assess the details carefully in order to confidently weigh the possible benefits against the risks and costs that could arise later. You might want to consider having a trusted advisor or mentor review the opportunity to help you weigh pros and cons or shed light on aspects that you may have missed.
How do you define an opportunity within your business?
Outline expectations that define what an opportunity means for you. This may differ for every industry but it will help to recognize an opportunity when the time comes. Is an opportunity a sale, a discussion, an invitation to an event? What defines an opportunity for you?
How do you assess if you should take advantage of an opportunity?
Opportunities can open new doors and help create new connections. When considering opportunities, ask yourself if taking this opportunity will distract you from the main direction of your business. Evaluate the advantages and disadvantages against your expectations and objectives for your business.
Conduct research about your market and your competitors, and where possible, engage current and potential clients who may be able to provide insight on a venture’s viability. Being informed can prepare you for making a decision on whether or not you should seize the opportunity.
How can you generate new opportunities for your business?
One of the many things I always remind my members is to keep your eyes on the horizon, what trends are taking shape, and where your industry is headed. Being a forward thinker will allow you to look for and seize opportunities even before they present themselves!
Identifying and taking advantage of opportunities is not an easy task. As opportunities may mean something different for every business owner, defining what an opportunity means to you and staying focused on your goals can make a world of a difference when opportunity knocks.
Do you feel every opportunity is a good opportunity? How do you assess the opportunity? I look forward to hearing your responses!