By nature, risk taking is necessary to the growth, and stability of your business. But, as any gambler knows, when you take risks, you can lose. It’s important to learn how to take risks that sustain and grow your business and that minimize the potential of losses.
Plot Your Goals: What are you aiming to get from this risky decision? Make sure you’ve written those goals down, and have someone look them over with you for perspective.
Determine Your Potential Losses: Smart risk taking does not involve risking your entire business for growth. Before you leap into a risky situation, cover your bases. Do you have the cash to run your business for 6 months? What exactly do you stand to lose if things don’t turn out the way you hoped?
Plan it Out: You need a plan that takes into account every obstacle and issue that may come up and how you should face it. Take your time to really think this through and map out your every step.
Review: Once you’ve taken the risk, evaluate the choices you made in the process. Were you slow to make adjustments? Was the risk profitable? Will it be profitable in the future for your business? And in the end, it all comes down to: Was it worth the risk?