BY: Alexander Williams
Risk is the chance that an unexpected occurrence will result in loss. This is why entrepreneurs must have exceptional risk taking management skills so they may receive a profitable return on investment. Entrepreneurs are calculated risk takers. They understand that the difference between risk takers and calculated risk takers is the difference between failure and success. Risk takers bet it all on one roll of the dice. They typically don't live to fight another day. They literally go out in a blaze of glory. Calculated risk takers measure the rate of return verses the risk and then make a decision.
According to Richard Benson, "The calculated risks you and your team take should be strategic judgments, not just blind gambles: Protect the downside by figuring out the odds of success, working out what the worst possible consequences would be, then deciding whether to accept." Benson, the founder and chairman of the Virgin group with a current net worth of $4.6 billion, is a master when it comes to calculated risk. He understood that no matter what industry your company is in there is always going to be some unexpected circumstance you and your team is going to go through that requires risk. It is up to you to make strategic judgment and not blind gambles to control the future of your investment.
As a generation, we need more calculated risk takers. We need more young people to showcase their ideas and skills in order to start the next big company here in the United States and help innovate the world. However without risk there will be no reward. So it will take courage from our young entrepreneurs. Andre Malraux once said, "Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one's ideas, to take a calculated risk - and to act."
http://www.forbes.com/sites/cherylsnappconner/2014/07/08/how-to-take-smart-risks-as-an-entrepreneur/
I personally think the point brought up about the need for more CALCULATED risk takers is very important. Today too many individuals take risks without gathering enough information, statistics, and facts which does not make them a successful entrepreneurs.
ReplyDeleteI believe that the need for Calculated Risk takers in today’s society needs to be focused on because it could be something that could effect our civilization in many positive ways. It would lessen the number of people who take chances in life without even giving second thoughts to anything; causing regretful situations.
ReplyDeleteTaking smart risks as an entrepreneur can be an easy task if we make it. In the business of calculated risks, all they try to do is to predict the future BASED solely on the evidence that they can find. The way to become a successful calculated risk taker is to do your research, have a good mentor, learn to exercise your patience, stay within your budget, always be moving, and make sure you enjoy what you do.
When you do your research, you want to make sure that you analyze how the economy is? What is the specific market or service? What are the newest trends? Your goal is to capitalize on a trend before others, which will allow you to become a leader in your segment. If you know how a certain market will react to a certain thing, you can capitalize on that knowledge as well. Lastly, make sure you have a strategy once you construct your research…And stick to it.
Having a good mentor will much more likely lead you into making much more smarter decisions. It allows you to learn from your mistakes, as well allowing you to have the one-on-one time to experience and talk with someone who has “been there.”
If you don’t learn to exercise your patience, you end up getting caught up in a “expending” your resources too quickly frenzy of “now or never” thinking, which will fairly universally fail. Just understand that success takes time.Try to make decisions that will bring you overnight success. Patience is key.
Spending more than your budget will cause problems quickly. A cash flow cushion to help you weather the ride always helps. Multiple lines of revenue, good line of credit, or continue to work part/full time as you get your entrepreneurial launch underway.
When participants stop working, they stop making money and stop succeeding. Entrepreneurs hustle constantly, work fast, and wisely.
Lastly, make sure you enjoy what you do. Never lose the hunger to succeed. Becoming complacent is a sign that you are no longer paying attention. Your goal is to have a passion and love for what it is that you do.
The overall concept of being a calculated risk taker and the steps to becoming a successful risk taker means a lot to me because I never really took the time to study what I was doing right and what I was doing wrong to become a successful entrepreneur. Now, I know and understand what rules and aspects to go by in order to become successful