Although opening up a small business is a risk in itself, it takes additional risk-taking to grow that business. Taking risks is crucial for businesses to grow, whether they are expanding into new markets, opening new locations, reaching new customers or extending product lines. Sometimes, doing nothing is the biggest risk.
To determine the best time to take a risk, you should weigh the potential costs of not doing anything about it with the potential benefits of taking the bullet. Here are the top five tips for wise risk taking for small businesses.
Identify your goals and their risks
First, determine your goals. Since more heads are better than one, identify key employees to participate in a brainstorming session to outline goals and assess the risks. Get your mentor in on this too if you have one.
Identify what you can afford to lose
Don’t go “all-in” and invest all your money on something you think might be successful. Ensure you have a buffer in case things go wrong, such as enough money to cover expenses through six months of reduced revenue. Smart risk taking for small businesses can mean taking small risks to test the water and examining results before taking a plunge with a bigger investment.
Plan in detail
A comprehensive plan that covers each step of the process is essential. Things to consider include funding the venture, ensuring the necessary supply of materials, training staff and marketing your efforts. Don’t rush the planning stage, it’s essential for managing risk and giving you a better chance of success.
Just DO it
Once all this is in place, you are ready to go ahead. As the new effort unfolds, keep careful watch to see if it’s meeting your expectations. It’s highly likely that some fine-tuning may be needed, but if you’ve paid careful attention to the previous three steps, your careful planning can help you identify corrective measures. Trial and error is an essential part of risk taking.
Review your process
Whether the risk you took produced the desired results or not, there will be something to learn from the outcome. You might learn that taking smaller risks first is a good idea for your company. Discuss the process with your original brainstorming team, as they’re likely the same people you will rely on when making future business-related decisions.
#ourplacemelbourne #ourplaceisyourplace #melbournemeetingrooms #meetingrooms #eventorganisers #boutiqueeventspace #melbournevenue #morethanjustavenue #melbourneevents #businessbuildingevents
* * * * * * * * * * * * * *
At Our Place Melbourne we are passionate about doing everything we can to make your event outrageously successful. Despite only launching in March 2017 we have made a big impact with our high value offering, our dedication to community, and our commitment to offering a uniquely personalised event hosting service for all of our clients and their guests. Stay tuned for our next big announcement. It’s always just around the corner. And please, don’t hesitate to contact us here, or in Facebook. Or email us on firstname.lastname@example.org We are only a message away.