Why not take the calculated risk and start your own venture?
You have been contemplating on starting your own business for quite some time now. You’ve weighed the odds and you believe you can do it. There are risks involved, you know that too! The truth is entrepreneurship and risks go hand in hand. This is a tough game and definitely not meant for the faint-hearted. As the world-famous actor, Jim Carey, says “Life opens up opportunities for you, and you either take them or you stay afraid of taking them”
All entrepreneurs have their own story behind their start-ups and there is no such thing as a one-size-fits-all formula that can guarantee success. Things are going to get scary and doubts are going to crop up at every opportunity. Taking risks will increase your confidence every step of the way. So why not take that risk?
Entrepreneurship consultant Leonard C. Green always tells his students that “Entrepreneurs are not risk-takers. They are calculated risk-takers.”
Risks that entrepreneurs take are not random ones but something that will benefit them in the long run. Green also adds “The difference between risk takers and calculated risk takers is the difference between failure and success.”
Removing all the “What ifs” from your life
You’ll never know until you try- is the mantra that many entrepreneurs use. At least in the future, you will never ask yourself “What if?”
You can never be real and one hundred percent sure if the risks you take will actually pay off, no matter how calculated they may be. But this shouldn’t stop you from taking them if you want to end up as an entrepreneur.
Taking risks can be a learning experience
Taking risks will teach you something whether they are successful or a failure. What is important to remember is that all risks cannot be good ones but all of them are opportunities to learn, and if you fail to learn from it and move on. Risks that entrepreneurs take are made up of two parts- assessments and action.
Risks foster innovation
Without risks, there can be no innovation. The whole idea of innovation itself is based on risks. There is always the risks of failure, however, risks can be leveraged with proper calculations and evaluations.
What are the different kinds of risks that entrepreneurs should take?
Every business involves risks and some are worth taking. These are market risks, competitive risks, technology risks, credit risks and financial risks.
As an entrepreneur, certain things are important to the understanding about the kind of calculated risks you are going to have to take. But first, you will need to be honest with yourself. Be aware of how tolerant you are of taking risks before setting up that business venture. Because no matter how much you calculate and evaluate there will be failures along the way, both insignificant and massive ones. How will you respond if something like this happens?
What are the advantages of taking risks?
Risk and its connection with the opportunity
Customers’ demands are constantly changing, therefore, businesses should be in a constant state of change and progress too. Business leaders understand this and they have learned to accept risk as a cost of opportunity. This attitude pushes them to realize their goals and be successful.
Risks takers have a competitive advantage
Very few people are brave enough to take risks, those who do already have a competitive advantage over those who don’t. Can everyone achieve the same as those who take risks? This is something that cannot be answered objectively. But if you do not venture into those waters you will never find out.
So what are you waiting for? If you have thought things through and you have calculated the risks involved then go for that venture you have in mind. You might just be the next entrepreneurial success story that inspires the world!