Taking Risks as an Entrepreneur
There’s a saying — high risk, high rewards.
Risky business decisions might lead to high rewards, but it is more likely to result in a loss. The preconception that risk takers are bold and admirable often pressures entrepreneurs into making rash decisions. As an entrepreneur, you must remember that the greater the risk, the more difficult the recovery will be.
However, no business decision is without risk. Stick to these 4 rules to manage risk for your business:
- Novel and complicated ideas are often riskier and less effective than simple ones.
- Don't chase the shiny new tech, trust what works or what adds value.
- Optimism cannot guarantee that there will be no challenges and obstacles.
- Ideas are great, but execution is the important differentiator.
Entrepreneurship is more than just money
While profit is one of the final determinants of a success business, an entrepreneur’s journey typically evolves around the value they add to people’s lives instead of just money. Decisions should be focussed on the core values of the business or on improving the customer experience. When a business is built on great fundamentals and is true to its core value, a strong customer base and profitability will follow.