We’ve all heard the old saying “nothing ventured, nothing gained”. Like most old sayings, there’s a strong element of truth in those words. At the risk (pun intended) of following one old saying with another, without risk there is not, and cannot be, any reward. There is an element of chance inherent in every venture, and unless that chance is recognized and faced, the venture will never become reality.
With that being said, some people are natural risk takers, and others are quite adverse to risk.
The key to success when it comes to risk-taking is to understand which type of person you are and how this personality trait can affect your business when it comes to dealing with risk.
It is important to keep in mind the secret of success when it comes to business risk is to mitigate potential damage in favor of potential gain. Therefore, neither type of risk personality, in and of itself, provides an advantage over the other when it comes to risk management. A risk-taker can just as easily overreach themselves as a risk adverse person can under-reach themselves.
When faced with a situation that offers reward and risk, the key is to coolly and impartially, without emotion, assess the potential positive and negative outcomes, and decide accordingly.
Successful business people are seen by many people as risk-takers, simply because they understand the danger in a situation better than anyone else involved. So, while it appears that they are courting disaster, the reality is the risks involved have been seen, contemplated, and managed in such a way as to lessen and control possible negative consequences.
In this way, the successful business person who takes a risk is very much like a professional tightrope walker. To the observer it looks death-defying and, perhaps, frightening. To the performer, it is simply another day at the office. Their skill, training and preparation sufficiently offset the inherent risk to make the feat only appear to be remarkably dangerous.
In your own business, don’t be afraid of risk, but, at the same time, don’t take risk lightly. Weigh your options carefully and, when you arrive at a prudent decision, move forward with confidence.
If you would like non-biased, fresh eyes on a situation within your business, feel free to reach out to me. I can help you analyze possible alternatives and solutions, and assess risk factors, in a way that will garner you the most success with the least risk.