continuing the rational of the previous POST (see here), growing your business is strongly connected to being ready to TAKE RISKS. Saying that, there is a HUGE DIFFERENCE between taking CALCULATED RISKS and just taking WILD RISKS.
The calculated risks are the ones that you fully assess the potential VERSUS the worst-case scenarios before you take action.
The best way to do so is to have a BUSINESS PLAN that includes the WHATS IF button. This WHATS IF button is where you play with the different scenarios...what if LESS CUSTOMERS will come on board? what if the PRICE AND THE MARGINS WILL BE LOWER?...and so on....
Taking RISKS and especially taking CALCULATED RISKS is trying new things out...yes, there might be failures...but, in the same time there might be great discoveries of NEW CONCEPTS AND NEW STRATEGIES that will make the difference and will make the biggest contribution to your business growth.
You should dedicate a certain amount of money that CAN NOT DAMAGE YOU and that WILL NOT HAVE A SIGNIFICANT IMPACT ON YOUR CASH-FLOW if lost. This certain amount of money should be dedicated to TAKING CALCULATED RISKS that you will deeply analyze and asses...before taking action and trying NEW STRATEGIES.
Universities have RESEARCH BUDGETS that lead to scientific breakthrough...business have CALCULATED RISK BUDGET that lead to great business breakthroughs.
