This article is written by Pravesh V. Jethwani – the Founder and Chief Executive Officer of VeeChem Global who is also a member of The Entrepreneurs Organisation – EO UAE Chapter- a global, reputed hand-selected group of entrepreneurs who have scaled their businesses in the region and have established themselves as pioneers and leaders in their space and contributing to regional impact.
Being an entrepreneur is no easy task, and risk-taking is a crucial factor to ensure success. According to a study, it was observed that about 5 in 1000 people have an aptitude for starting and growing a business. Risk-taking was a key trait supporting success in this arena.
While taking risk is a part of every business, it should be noted that the risk undertaken is carefully planned and implemented. As entrepreneurs, risk-taking, which is an innate part of the entrepreneurship DNA, serves as a learning experience. Be it any industry, every entrepreneur reaches a stage where they are required to take a risk and they shouldn’t shy away from it. It not only differentiates them but also spells the ability of the business owner to beat the competition.
Entrepreneurs are often seen wearing multiple hats, and risk-taking is one of them. While most entrepreneurs take calculated risks, some of them prefer to indulge with the unforeseen ones. However, not all risks pay off, and it is recommended to calculate the potential results and have contingency plans before taking a risk.
Readiness to take risks can give an entrepreneur a competitive edge. For example, opening a second outlet where other business owners are afraid to open one could pay off with a loyal customer base. Similarly, taking out a loan could give the business owner the necessary startup capital needed to fund the business. In today’s fast-paced world, customers have constantly changing demands. For this reason, businesses should be in a constant state of progress and accept risk as a cost of opportunity. While there are several factors that help entrepreneurs take the right risk, it has been observed that –
-Good planning and careful financial management can help an entrepreneur determine which risks are sound and which are not
-Hiring Experts can increase the possibility of positive outcomes
-Seeking advice from industry experts can result in success
As entrepreneurs, it is important to remember that there’s a fine line between optimism and risk. There have been many studies over the years that suggest over-confidence can lead to business failure. As such, business owners should assess the tolerance for risk, before taking the plunge. In addition, business owners should passion in what they do. Passion will help them go through times when risks and problems seem overwhelming.
While risk-taking is an essential part of developing the entrepreneurial spirit, the learning experiences that come with taking a risk, enable entrepreneurs to grow and achieve their goals. Remember, as an entrepreneur, it is crucial to trust own instincts, which is nothing but taking a risk. In the words of Helen Keller, ‘Life is either a daring adventure or nothing at all’ – So go ahead and try the entrepreneurial leap of faith!