How to take a calculated risk
Starting a business can be as stressful as it is exciting. Whether it’s your first business or seventh, it’s important to lead with confidence and not let your feelings get in the way. To steer towards long-term success, it helps to learn about calculated risks as much as you can. Knowledge and awareness can keep you on track and help you feel more in control.
What can you do to mitigate risk?
Risk can put you and your business in danger. But it can also bring serious reward – so depending on the risk, it may be worth it. While this may seem daunting, there are a number of things that you can do to take the plunge.
Have a thirst for knowledge
The more you know, the better prepared you’ll be. While this might seem simple and cliché, it couldn’t be more appropriate for someone embarking on a business venture.
For example, you could start researching businesses or executives you admire. Not only is it worthwhile learning from their achievements, but also their mistakes. Think about how these experiences can better equip you to navigate potential pitfalls. You may gain perspective and develop new approaches to business you may not have thought of before.
Another goldmine is self-reflection. People often forget to look back when they’re constantly running forward. Take the time to consider previous roles. Think of a challenging situation and ask yourself what you’d have done differently. No matter your background, you’ll have knowledge that can be applied to your business.
Surround yourself with like-minded peers and mentors
The company you keep can have a big influence on outcomes. Rather than jump into business alone, surround yourself with the support of others whose skills and creativity you admire. Whether that’s lawyers, accountants, designers or architects, why not find ways to collaborate and see how they can help you succeed and grow?
It’s also important to take stock of who’s around you and not be afraid to make changes. If you’ve engaged a consultant or partner that hasn’t delivered – or simply hasn’t meshed well with your vision – it’s okay to part ways. Sometimes you need to make tough decisions to avoid negative impacts to your bottom line. It’s all part of doing good business.
Look after yourself
During every stage of business, it’s important to take care of your own health. High levels of stress can creep into your life, and this can interfere with your ability to make thoughtful decisions.
Letting go of worries through activities like sport or meditation can help your mind stay fresh. This means you’re better placed to critically analyse pros and cons at work.
Take the plunge
Once you’ve reflected on past experience, bounced ideas with others, and considered all sorts of business scenarios with a well-rested mind, you may be ready to go for it!
While taking risks may seem scary, with the right preparation and support, you can take the plunge. Contact our team at Judo Bank if you want someone to help your dream come to life.
Rolling up your sleeves and doing it yourself
While many of us may fantasise about opening a business, the dream is often quite different to the reality. Once you progress from goal setting to planning, your vision may seem significantly more challenging to achieve. But if you’re ready to roll up your sleeves and do the hard work, it can be incredibly enriching and rewarding.