As an entrepreneur, if you want to go far in the game, you have to learn to take risks. Taking risks can be very scary. Entrepreneurs avoid taking risks because inaction is often safer than action. However, most successful entrepreneurs today would tell you that where they are today is because of their ability to take calculated risks.
You need to embrace risk as an entrepreneur, as long as you do so in a calculated and informed manner. In order to achieve true success, you must rely on innovation and use new ideas to achieve your goals. There are many reasons why entrepreneurs should take risks, bellow are reasons you should be willing to risk your business in order to pursue something new.
1. Risk-taking is essential in entrepreneurship: Risks and entrepreneurship are intertwined. If you are not prepared to take risks, you have no business being an entrepreneur. As an entrepreneur, you would face so many hurdles, you would stake all you have for an innovative idea. Slowly every decision you make would be laced with some level of risk. You need to program your mind to accept risk as a part of the deal, and you need to be ready for that as you enter the entrepreneurial world.
2. There are different types of risks: There are certain risks that exist, they are uncertain and often involve some knowns and unknowns, which complicate the decision-making process. A lot of business risks fall under this aspect because of varying factors, like consumer habits and financial changes, which are hard to measure or forecast. On another hand, we have completely unknown risks, these types of risks occur when you bring new innovation into the market. Having ample understanding of the differences that exist between these risks can aid the understanding of how risky your decisions actually are.
3. Some of the risks won’t pay off: As an entrepreneur, there is a need to understand that not all risks taken would yield positive results. Don’t be fooled into thinking that all risks are good risks or that always taking the risky option will pay off. Sometimes even the most calculated risks fail. Rather than choosing to disregard the fact of overcoming your apprehension towards risk-taking embrace it. Let your mind come to terms with the possibility of failure and if eventually, you fail, learn not to beat yourself up about it. Learn from the experience and keep moving.
4. Risk is a differentiator: There are certain risks to take which guarantees high value while some others offer smaller consequential potentials than others. Some risks could destroy your business or make it stronger than it was, however, one essential factor is common with all risks: They’re differentiators. Because most people are unwilling to take risks, the risk-takers of the world naturally stand out in the crowd, and as we all know, entrepreneurs and businesses that stand out are the only ones with a shot at breakout success.
Even if you end up failing, you’ll end up “failing gracefully,” so learn to take risks, you might reveal more opportunities for yourself just because you were willing to stand out and break away from the norm.
My advice for budding entrepreneurs is to overcome the fear of failure. When you’re starting your own business, it’s going to be risky by default, There is a misconception that failure is the opposite of success but this is not the case, it is rather, the stepping stone to success.