There are two kinds of people in life – risk takers or risk averse? Risk takers are those who seize the moment and grasp the potential opportunity without thinking much. But risk averse people mostly work on their plans, always second-guessing the approach. Both of the approaches have their own disappointment. Risk takes don’t think about planning so often walk away a loser. Risk averse are continuously stuck in planning phase but plans never get invented.
You must be thinking that entrepreneurs are the risk takers. But you will be shocked to know entrepreneurs are often more risk-averse than you might think. By nature, entrepreneurs are risk takers because they left corporate world and steady salary to embark their own journey. But the reality is that entrepreneurs are more cautious and risk-averse than they are perceived. And they always take calculated risk. Calculated risk means you have the ability to spot an opportunity, investigate the options and then take calculated risk weighing all pros and cons of the situation. This unique ability sets the entrepreneur apart from others that may take reckless decisions. Entrepreneurs who are calculated risk takers fully understand the clear distinction between risk and danger. They know how to maintain a need for security and making the necessary decisions for the success of business.
Experts have following tips how entrepreneurs can manage their risks-
Know customers well
A great entrepreneur always stay in touch with his customers, knows their needs well, interacts regularly with the employees and make conscious effort to stay updated with the new technologies that may benefit the company and society as a whole. An entrepreneur should know new market trends and requirements so that he can minimize the chances of loss. You can always avoid costly mistakes such as launching a new product which may not appeal the customer base.
Embrace risk by defining short term goals
You should feel comfortable with the idea of risk as it is important to determine your success as an entrepreneur. Set feasible goals which you can not accomplish in short period of time. When you achieve short term goals, you seek courage to avoid decisions which carry greater risk for your business.
Know your market
Information and research are the most important ingredients in embracing risk. The best and most advisable way is to create a deep understanding of the market. Be fully aware about the opportunities and risks that very effort will give you advantage over your competitors. And you will be able to distinguish between risk and danger.
Get fellow entrepreneur’s advice
Being a entrepreneur is a risky affair no matter how smart you are. Empower yourself by seeking advice from seasoned entrepreneurs. The idea is more you know, more you go towards success. Look for the mentors who have the information and skill set that you require for your problems. The entrepreneurial success is all about your efficiency to maximize rewards for the lowest risk possible. So, to reach the pinnacles of success, an entrepreneur must have the ability to calculate risk.