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!