By Abhi Golhar
Whether you are an experienced or new entrepreneur, risk-taking can be an intimidating proposition. The uncertainties it creates in your mind may steer you towards taking the path already beaten. Nonetheless, successful leaders and entrepreneurs will tell you that their risk-taking abilities were a distinct factor in their success. How do you adapt and make risk-taking part of your success? Here are some tips and strategies you can put into practice.
Understand the Cards in Your Hand
Taking risks is always a fixture in entrepreneurship. Many entrepreneurs will tell you that their initiatives or steps link to the risks they took. Your personal capital is going to be part of the hand you play in making significant business decisions. Whether you are taking a chance on investment or sacrificing an opportunity for a better one, identify your resources and the odds you face. By understanding the risks associated with each decision and identifying them consistently, you will be more prepared to deal with them.
Recognize the Different Types of Risks
There are the small risks and the big risks, which are important to understand. Some risks can be better measured and calculated than others. Smaller risks are those which you have a suitable means of evaluating your chances of success. In some cases, you can use historical data to estimate the specific probability you have of achieving a particular outcome. Some risks are more difficult to assess than others and have a few unknown variables that are difficult to identify fully. There are also risks that are indeed out of bounds, in territory where you have no means of getting data or an estimate of success. Learn these various types of risks, categorize them and apply them to your decision making process.
Be Ready for Any Outcome
You can hope for specific outcomes and results when tackling a decision. Whether you see things as half-full or half-empty, you should expect any outcome at any time. Risk-taking can be a rewarding strategy, but you can also make more informed decisions when you understand the good or bad baggage that comes with risks. Even if you fall short, have a plan in place that allows you to take the next step and route an alternative path to success.
Avoid Discouraging Outside Opinions
Feedback from other people can be either positive or negative. When people try to talk about the impossible odds you face, you can listen. But do not allow them to dissuade you. If you genuinely want to do something meaningful, then stay on course in pursuing your entrepreneurial dream. Negative opinions can prevent you from achieving your goals. Do not let them affect your inspirations and drive to succeed as an entrepreneur.
Differentiate Yourself by Taking Risks
Many risks offer different levels of rewards. Some have significant consequences, while others bring modest returns. Regardless of the promised bounty, risks, in general, are a way to make your business to stand out from competitors. When you recognize that risk-taking is an advantage you can build upon, you are more motivated to pursue them. Engage with your associates in the situations you face and then develop a calculated plan for any outcome. Whatever happens, the experience can benefit you and your growth as an entrepreneur.
One of the most common elements of business and entrepreneurial success is risk-taking. Whether you are launching an investment, initiating a project or filling in a position, the uncertainty of whether you succeed or fail is always there. By recognizing risks and understanding your odds, you can establish a reliable foundation for tackling them. Consider these practices for the next major decision that comes your way.
Abhi Golhar is a nationally syndicated radio show host & blogs about real estate investing strategies on RealEstateDealTalk.com.