Taking Calculated Risks
According to the 2014 Small Business Success Study, the most recent recession continues to have an impact on how small business owners operate their business. In fact, 75% of respondents rated the overall level of risk they are taking with their business as conservative. But let’s face it. You couldn’t have started your business in the first place if you were afraid of risk. So avoid becoming too conservative once your business is beginning to grow. First, determine your acceptable level of loss. Once that’s established, create a strategic document that outlines where you’d like to see your business grow. Then, get out of your comfort zone, research the possibilities, and make strides in that direction. Be sure your people are doing the same—don’t tolerate complacency.
Of course, whenever you take risks, you’re bound to have bumps in the road. It’s part of the equation. Not every move you take or decision you make will succeed. Allow room for missteps. (After all, if you or your people are afraid to fail, you’ll never want to take the risks that propel the business forward.) Then learn from those failures—why didn’t it work?—and use that knowledge to try something else.