Are you actively avoiding taking risks in your business out of fear of failure? As business owners, we must overcome the hesitation that comes with risks and approach them as opportunities for growth in our business. This article will cover:
- How to Build a Culture of Risk-Taking
- Overcome Risk Aversion By Pivoting
- 4 Benefits of Taking Risks in Business
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When people tell you to take risks, what’s your initial reaction? Are you excited and ready for the possibilities? Or, are you hesitant and fearful?
Many of us naturally lean more towards the latter. I relate to this completely. As a business owner, we’ve put a lot of time and resources into our business so we have a lot to lose.
But we need to look at risks differently. Risks are not opportunities to fail, they’re opportunities for growth.
One of the biggest risks we take is quitting our 9-5 to start our business.
For me, it was something I thought about intensely and weighed every consequence. I eventually bit the bullet and started my business coaching firm and it was the best decision I could’ve made!
If I had stopped taking risks at that point, I wouldn’t have grown my company to the point it is now, I wouldn’t have my awesome team, and I wouldn’t currently rank as a top 100 coach in the world of over 1,000 coaches.
Think about how your life has changed for the best since starting your business. Don’t you want more of that?
One thing every business owner must realize is that there will always be risks every step of the way to successful entrepreneurship. No matter how many times we try not to take a risk, sometimes, somewhere, we will need to decide with uncertainty. It’s best not to approach these risks with fear and instead weigh the options and make a decision that will provide the most opportunity for you.
Build a Culture of Risk-Taking
If you’re a business owner who is more hesitant to take risks, you may also be hesitant to hire risk-takers. This is a common sentiment among many business owners.
They don’t want disruptors or innovators; they want people that can execute the plan the business owner created.
However, these same business owners are the ones blindsided by the disruption, because no one was looking for it in the first place. Instead, they let competitors pass them up and reap the benefits.
Think of companies like Nike, Barnes and Noble, and Amazon. These are companies that took risks and are known as major disruptors in their industries. They foster a culture of innovation and possibilities. It’s a mindset shift and a keen focus on the consumer’s wants and needs that fuels these companies.
Overcome Risk Aversion By Pivoting
Yes, companies like Nike and Amazon took risks but this didn’t come without their share of failures, though.
There are many products, tactics and opportunities that failed before they were able to reach the level they are at now.
They overcame this because they were willing to step outside of their comfort zone and PIVOT.
A pivot means changing the direction of a business when you realize the current products or services aren’t meeting the needs of the market” (Agrawal, 2020). In the Forbes article, the author articulates what we must do to successfully pivot.
- Focus on our customers and on their needs.
- Focus on features of our products that we can adjust to meet those needs.
- Be strategic and align the changes with the goals of our organization. Don’t abandon our vision, adjust our mission.
- Speak the language of our customers always and put ourselves into their shoes.
- Monitor our competitors. Don’t mimic, lead.
4 Benefits of Taking Risks in Business
If you’re not convinced at this point that taking risks is imperative to business growth let me end this article with 4 benefits to risk-taking as listed in an article by Operation Verve.
- Taking risks are a learning opportunity
- Innovation cannot happen without risks
- Risk directly correlate to opportunity
- It builds a competitive advantage
So, stop playing it safe. You’re not helping your business and you’re not helping yourself. Hire risk takers on your team who can push you towards that while helping you to evaluate the considerations that these risks have. Or invest in a business coach who can help you effectively weigh your risks Tak. My business offers a free consultation for any business. Just give us a call today to book your spot today!
