This Might Not Be A Good Idea: Tips For Determining  Whether Or Not Your Next Business Venture Is Worth A Shot

Have you ever been really excited about a new, creative idea, only to find out that it was an impossibility? Did you go through with it anyway sure that you could circumvent the downfalls? It didn’t work very well…or did it?

Advances in business are all about taking risks, but how do you know when that risk may be too much to handle? Below are a few things to keep in mind the next time you consider jumping off the ledge of risk without a harness.

Risk Assessment

When your children ask you for a favor, like for a new toy or to borrow the car, the first thing you do is to weigh the risks. How much will it cost me? Is this a toy she will be tired of in two weeks? Is there heavy traffic where my child is going and who is going with him?

We naturally consider the riskiness of our decision. Business shouldn’t be any different. When considering a new decision of any kind, it’s a smart thing to contemplate any and all risks that might be associated with a decision in favor of and in favor of not.

Shoot For The 70%

Ok. Now that we have made it clear that you need to take some time to think, let’s talk about what to consider. When making a decision, most of us would like to have every detail we could possibly need to make a good decision. In the world of business, it just doesn’t happen that way on a regular basis, if at all.

Sometimes, you may get lucky and have access to 90% of the information you need, but waiting for it can be a slow process. By the time you have what you feel like you need to make the decision, the opportunity could be gone. It is encouraged to get comfortable deciding whether or not to take the plunge on about 70% of the details.

Look To The Future

When entering the decision making process, looking to the future of your company will give you part of that 70% of info that you need. If this is a success, how much will it make for my company? Does it exude the image we are attempting to portray?

What could the outcome eventually lead to? Sit down with your executive committee and hash out the details. It’s also a good idea to consider how the risk will seat you among your competitors.

Be Confident In Your Decision

In the end, whatever decision you make, be confident in it. If you have taken all the steps above and researched everything you know how to, there is no reason not to be. Nevertheless, stand up and own the decision and the outcome.

Whether it means learning from your mistake or stepping up to the next level, a good business leader knows how to take the consequences of a risky move and progress with them.

Business is built on risk. That doesn’t mean you have to be reckless about the process. Refer back to these tips the next time you are considering a new direction for your company.

Originally posted on November 6, 2017 @ 4:44 pm

Business, Tips

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