Taking Risks in Business

Risk is a fundamental part of life as it is in any business.  That said, being a risk taker in business is not the same thing as being reckless.  While the word risk might have negative associations to some (that it implies danger and loss), it can be viewed as a positive in business.  If you face challenges and overcome the unknown, you gain the possibility of making a big ROI.  No matter what type of business you run, if you’re not taking risks, then you’re not progressing.  It becomes easier to find new opportunities when you take calculated risks.  While there is always a chance you’re risk might not pay off, there are also times when they will pay.  It’s hard to move forward when you’re playing it safe all the time.  A business is grown by risk taking.  You have to take risks on a consistent basis to create new opportunities and boost your chances of success.  So how to take risks in business without jeopardizing your bottom line?

Look for a new trend.  There are always new and popular trends going on.  Be open to them – don’t box yourself in.  While you may feel that you’ve backed yourself into a niche with your business, you’ll always find that new opportunities present.  Smart entrepreneurs know how to discover and tap into new trends.  Always be on the lookout for them and try and explore them.  Of course, don’t just pounce on any new trend – weigh the pros and cons first.  You have to analyze whether it will be profitable for your business and whether it is the right time to go after such a new opportunity.  Once you’ve balanced all the factors, consider going ahead and capitalizing.

Find an untapped niche.  No matter what type of business you run or what types of products you’re selling, you can always expand your business by looking at under-served niche markets.  Many entrepreneurs fail to capitalize on such an opportunity because they are scared to go outside their comfort zones.  “They don’t really want to risk the reputation or brand they’ve [already] built.”  While it might seem daunting and risky, it’s really not.  The only risk you run is that you won’t have a profitable audience but if there are even a few other businesses operating in that space, there’s no reason you can’t as well.

Look at your competitors’ weaknesses and fill in the gaps they’ve left in the marketplace.  Make their weak points your point of strength.  “This way the risk you take is not only well calculated but also is headed in the right direction.”  To create a successful business you have to be one step ahead of the competition.  By analyzing your competitors, you make your approach to the marketplace more refined.  You should aim to take consistent risks that don’t affect your overall progress or bring you losses you can’t afford.

Chuck the conventional wisdom.  Break some rules and follow others.  “Creating a highly successful business requires that you do things on your own.”  Sometimes it’s better to follow your heart than your head even if that sounds counterintuitive in business.  You want to step outside your comfort zone.  Experiment with new ideas.  Try and find ways to do things that were never done before.

Trust your instincts.  “Your gut feeling can be a great navigator, which can help you take big risks easily.”  Intuition is just another form of knowledge so if you trust your instinct, taking a risk doesn’t seem that scary.  Your intuition often serves you better than rational thinking.

Lastly and possibly most importantly, do something scary every day.  Try new things and new approaches to doing business.  Taking risks involves vulnerability.  Don’t let fear hold you back.  Think of new and innovative ways to approach your business goals.

Here are some articles you might want to check out about taking risks in business:

“Taking Risks in Business Can Help You Make Big Bucks”: http://ezinearticles.com/?Taking-Risks-in-Business-Can-Help-You-Make-Good-Bucks&id=6698688

“Why You Should Take Risks in Business”: http://www.lorensworld.com/business/why-you-should-take-risks-in-business/

“How Do I Take a Risk in Business”: http://smallbusiness.chron.com/risk-business-5133.html

“10 Smart Ways Successful Entrepreneurs Take Risks”: http://www.youngentrepreneur.com/blog/10-smart-ways-successful-entrepreneurs-take-risks/

Until next time…