. . But isn’t that too risky?
You’ve probably heard that question or something close from a friend of family member? Yes they care about you and don’t want to see you hurt, but . . .
The fact that a particular thing is risky doesn’t mean it isn’t worth exploring!
In fact, the greatest gains often come from the riskiest ventures. Nothing ventured, nothing gained right? And very often when we take that leap of faith and go ahead in spite of the fear, we wonder what in the world was holding us back all the while. Usually, it’s nothing but ourselves. I shared in-depth about self-sabotage yesterday
Society has programmed us to think of risk from the standpoint of fear, danger and possibility of loss.
Right from infancy when your parents watched out for your every move and yelled, or jumped whenever you took a risky step like climbing the stairs, or going outside, these mindset may have become ingrained in you such that you view ‘Risky’ as something not to be touched.
This way of thinking limits you from your true potential because it will make you lose lots of opportunities that can change your life forever.
How To Evaluate Risk
A better standpoint to evaluate risk and overcoming fear is by looking at it from the angle of opportunity and possibility for gain or profit, and this makes the difference between those who seize opportunities and those who shy away.
Some of the greatest achievements were done by people who bet their all and pushed all their chips in on that particular idea.
Examples of Apple Inc. bringing back Steve Jobs in the late ’90s might sound like a bright idea now, but it certainly was very risky considering that the company was very very close to filing for bankruptcy at the time.
Google was about to be sold for less than $1million dollars to George Bell of Excite, the only reason it wasn’t sold was because George was negotiating down to $750,000. Take a second to think what if they budged?
In this video, learn how to shift your mindset by asking yourself a simple question each time you are presented with a ‘risky’ opportunity.
Watch The Video Below To Learn How To Evaluate Risk Single Every Time
The problem is we have been conditioned to make decisions out of fear of loss.
This will keep you safe, but it is also keep you average.. . Fine, if that’s where you want to be in life.
If you want to make an impact, or do great things, you need to have an appetite for risk, but also know how to weigh how much risk you want to take in comparison to how much you can gain from it.
2 Things to Consider to Evaluate Risk in Business
1| Opportunity for gain/ profit: You need to write down the potential benefits if you are successful with what you are thinking of pursuing.
- How much will it make you?
- What experiences or achievements can you realize?
- What Memories will you create?
- How many lives will you impact?
Note that this is not some ‘wishing exercise’, you need to know realistically how much you can make in a period of time if this is successful. Write this down.
If there is no monetary value, maybe what you gain is an experience, write down all the experiences and achievements you can get from this risky thing if it goes well.
2| Possibility of loss/ danger: Make a second list of things that could go wrong if you fail. (Sweating on your palms already? No worries, just write down that list!)
- How much money could you lose in investment?
- What could go wrong?
- How much time would be wasted?
- What Impacts can these losses have on your life, relationships, health, etc.?
Just write off your head all you can think of.
How to Make Your Decision
Take both lists and put them side by side. Compare the opportunities for gain/ profit to the possibilities of loss and weigh the pros and cons.
For most of the time, you will already see that the opportunities for gain far exceed the possibilities of loss.
Make your decisions based on this comparison.
Note: If your possibilities of loss are (not necessarily more) but heavier than your opportunities for gain, that may be a pointer to really consider if it is really worth it putting so much on the line for that goal. You probably should get some counsel from someone well experienced in that area, and only go ahead if you have a really strong gut feeling to do so.
Lastly, Reduce Risk As You Go On
If your final decision is to proceed in the direction of that risk, make sure to consciously reduce the risk as you go ahead.
You will find many opportunities to reduce risk, and create some cushion points in your business. By doing this, you can totally eliminate all risk in your venture in a short while.
Google may have started with just the search engine, but hey, we now have Google Play, Android, Hangouts, Google Plus, Electric cars, The Nexus smartphone, and lots more.
[Image credits: lizpryor.com, teengazette.com]
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