The most successful entrepreneurs are risk takers. Take for example the late Steve Jobs. He and his team dove into a huge gamble when they were working on the first Mac, from redesigning hardware thrice to making its software more advanced than its time. The risks paid off, with the computer as one of the top technologies used today, over 30 years after it was first introduced.
While risks have rewards, taking that huge leap into uncertainties is still very intimidating. To help you be at ease with risks, here are some things to remember:
Risks are Part of the Business
It’s simply a reality of that complicated entrepreneurial life. Each step in business growth is filled with risks. Think about it, the moment you decide to give up your day job and venture into this business, you took a risk. In testing a business idea or asking experts “how to franchise my business” or hiring a new person in your team, you’re playing with uncertainties and possibilities. You need to embrace risk as part of the whole package.
Risks Have Different Types
You’ll encounter competitive risks, or uncertainties when you venture into a business that has competitors who have more advantages than you. Or, you may face strategic risks, which can shake even the most robust, well-researched game plan. A good entrepreneur isn’t the one who puts out these risks (because that’s impossible), but the one who can anticipate such risks and take precautionary measures.
Risks May Result in Failures
Sometimes, taking risks, even those you have anticipated, will fail. And again, this is part of the reality of risk taking. Sometimes, you win. Sometimes, you lose. So, embrace the possibility of failure as much as you hope for the best. And remember, your attitude when you lose is important. It will be a crucial factor in moving forward and making things better for your business.
Risks are part of the entrepreneurial life. What matters is how you maintain that right perspective in managing risks.