Sunday, May 25, 2014

Take Risk When You Can Afford It

You’ve probably taken some risks in your life. It’s a huge risk to leave a 9-5 job and start your own business. However, once your business starts to take off, you might be tempted to keep doing the same things, since you know they’re working. Why take chances if you don’t have to?

If your business is thriving without your doing anything new, you might not want to take any risks. But keep in mind that just doing the same thing is also a risk which only comes back to haunt you when that thing stops working. Here are a few tips to enable you to take chances in business:

Take a Risk When Your Business Is Doing Well

If your business is not doing well and you decide to start a new venture, chances are you aren’t going to be able to deal with failure. For example, if you own a Thai restaurant which is not doing all that well, you might be tempted to open a Chinese restaurant to see if it would do any better. But if the Chinese restaurant also fails, this will affect your finances very badly. On the other hand, if your Thai restaurant is doing well, you can start a Chinese restaurant too, keeping in mind that it might fail. If it succeeds, then that’s great for you. If it fails, at least you’ll have some financial padding because your Thai restaurant is doing ok. So take a risk when your business is doing well. (I had great Thai food yesterday so I had that meal on my mind)

Take Calculated Risks

You don’t have to take huge chances that are destined for failure, like investing in risky stocks or selling clothes for teenagers in an area filled with professionals. Don’t take risks that go against common sense. Instead, do your research before you take the risk. That way, you’ll know exactly how much of a risk you’re taking. Plus, you can also do something new that isn’t completely different from what you’re already doing. For example, if your store selling clothes for teenagers is doing quite well, you can introduce a new clothing line in the same store, which is geared towards a slightly older audience. Rather than opening a new store altogether for an older clientele, trying out your new line in your existing store is less of a risk. Plus, it’ll give you some indication of whether your new idea is likely to succeed.

Bottom line is to take risk when you can afford it.

Please share on social media if you found this post helpful. If you have a comment or question I would be happy to discuss. Read more on my blog

No comments:

Post a Comment