“If it doesn’t scare you, you’re probably not dreaming big enough.” Never did I understand that saying more than when I partnered up with a former colleague nearly a year ago and launched a creative agency. While I always knew that risk-taking was associated with entrepreneurship, I never realized just how scary those first steps could
be. Here are five things I’ve learned so far…
1. Payoff is oftentimes uncertain
Regardless of how much you’ve planned and calculated your strategies, nobody knows if the risk will pay off. This shouldn’t deter you from taking more risks necessary for your business’ growth. No matter what field you are in, risks will always be there waiting for you around the corner.
2. Risk-taking does not mean betting everything
Don’t take just any risk. You should know the type of risk you are facing and how to deal with it. Also, be prudent in moving toward your goals. When faced with a risk, it does not mean that you’ll immediately take the bait; of course, it’s mitigating the risk if possible as you work on conquering the obstacles along the way.
3. Learn from your failures
A successful entrepreneur looks at downfalls as an opportunity to learn and grow. If you took a risk but it didn’t work out, that’s no reason for you to give up. Instead, look at the bright side of things and learn from what didn’t work to mold new strategies. This will be one of the ways for your business to grow.
4. There’s no innovation without risks
As clients’ demands change, so should the services that you offer. It’s necessary to come up with innovative ideas to keep up with the changing times. Continue to change for the better with new and fresh ideas. It’s the only way to differentiate yourself from your competitors.
5. Less competition for those who take risks
Most entrepreneurs avoid taking risks because they are frightened of the repercussions. This fear holds them back and results in less competition for those who take risks and at the same time puts them in a favorable business position.
Need some inspiration??? Here are a handful of businesses, you may have heard of them, that took a risk and it really paid off.
Microsoft
The history of Microsoft is riddled with missteps, especially when it comes to
mobile devices. In 2001 the tech giant pushed the envelope by launching its first
gaming console: the Xbox. At a time when it seemed like there could be no rival
to the Playstation, the company doubled down on their marketing budget for the
device. Today the Xbox isn't just for playing games, but it’s also a major player
when it comes to television and streaming videos.
Whole Foods
Buying organic and natural products used to seem like something only the high-
class could afford. John Mackey and Renee Lawson Hardy, owners of Safer Way
Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural
Grocery, and the ones responsible for the rise of the all-natural economy. They
all left their popular shopping market gigs to bet on Whole Foods, which could
have been a major flop. By believing in the model, and starting out with less than
20 employees in 1980, they've changed the entire culture of shopping for
groceries.
Twitter
Twitter's user base was growing when Facebook offered $500 million to take
over the growing social network. Twitter told them to take a hike. Sometimes
saying no and sticking it out through the tough times is the hardest risk of all.
Charmin
In 2014 the toilet paper company decided to use potty humor to get its audience
engaged in their product. Turning a wholesome family brand into one of the
most engaging, hysterical brands on social media was a big risk, but it’s how they
kept the company rolling.
Google
If you can imagine it, there used to be no Google. Sergey Brin and his co-founder
Larry Page created the company while getting their PhDs. They almost gave up
on it all because it was taking up too much of their time. Page almost sold the
company in 1997 for just $1.5 million. In 2006, when no one understood the
potential of a video service called YouTube, the tech company bought it up.
FedEx
FedEx was originally denied a business loan, and they needed to foot a gas bill
and stay afloat. Fred Smith, founder, had the bright idea to take his $5,000 to Las
Vegas to raise the cash. While it’s not a recommended way of taking risk, it paid
off for Smith.
Apple
Apple changed the world and how everyone connects with each other. They also
took big risks that paid off with how they’ve changed the way users listen to
music, going against popular opinion and betting on better audio all around.
Whether you’re running a small, one-man shop or a Fortune 500 company, you can set
your sites on just treading water by playing it safe. However, your business will appear
as tired as it is after a while and drown if you go that route. It’s best to take intelligent
risks and focus on winning, because if you don't your competition will.