There is Always a Certain Element of Risk

by Kori Rodley Irons | More from this Blogger

06 Mar 2008 02:08 PM

Anyone in business-even a small, home-based business-has to try to balance security and risk. For some of us, we may want to minimize risk so much that we hold back and try to convince ourselves that total security and stability are the only way to go. The truth is, however, there is always a certain element of risk in just about any endeavor.

I have worked with clients in the past who have been trying to minimize risk no matter what. They wanted to account for every penny, have plenty of insurance to cover every aspect of their business and refused to work with anyone who might not fit within their concept of what safety and security meant. The problem is that while you might be keeping things safe and secure to a certain point, you also might be stifling your business and stopping natural growth. Risk is an important element in keeping things moving forward.

We cannot ensure that every invoice will get paid (and on time too) or that every prospective client or customer will turn out to be stellar. If we stay with the status quo, however, and don't take at least some chances, we might actually lose business or go backward with natural attrition. No matter how much you try to predict what will succeed or fail and draw up guaranteed plans for how to build your business, there will be elements of risk that exist. There will be times when you have to take a leap of faith when you really don't know what the outcome will be, and this is really just part of doing business.

Of course we want to minimize financial risk and not throw all caution to the wind, but too much clenching and avoidance are not healthy for our businesses either.

Also: Too Much "Bottom Line"?

Success Can be Scary

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