Risk taking and entrepreneurship go hand in hand. The thrill of the risk-taking ride is (for many) a huge driver in starting a business.
If you’re an entrepreneur you’ll be familiar with many of the risks involved – the risk of not having a steady pay check; the risk of sacrificing personal capital; the risk of being reliant on cash flow.
There’s also the risk that our ideas won’t work out. And we risk again when we take on an employee or work with other people – despite the huge gains.
Risk is a fundamental part of owning a business. I see it every day on these large scales, and then there are the day to day risks, too. The contracts that are verbal, the networking opportunities that are missed, the investment in software and services.
Risk is directly connected to how we make decisions. Being a great decision maker is a key part of being a successful entrepreneur.
How do you see risk in relation to your business?
As entrepreneurs, we need to encourage risk in order to encourage experimentation, creativity, innovation and fundamentally growth. So getting comfortable stretching and reaching to new places is important.
I believe there are two ways to become a great risk-taker:
We can get better at making good decisions.
And we can protect ourselves from bad decisions.
A combination of the two is probably the best idea!
Decision making skills need time and practice to be perfected, but for a kick-start consider this: 95% of the decisions we make are intuitive. We make them instantly and then we post-rationalise based on experience, evidence and ration.
When we are able to balance our intuition with ration, we become not only great decision makers, we also be fast decision makers who are intrinsically aware of the context of our organisation and our personal and professional values. Making a decision that balances all of these aspects leads to great choices and clear direction.
And yes, this takes times to perfect. So when decisions fail, insurance policies can step in. And insurance that protects ourselves, our employees, our clients and families gives us more wiggle room as we practice our decision making skills.
And of course, regardless of how much risk we’re willing to take, those you work with may be less inclined!
The Insurance Octopus provides flexible insurance policy options through a range of providers, delivers first rate customer service and has been created with business owners in mind.
How do you handle risk in your organisation? Do you have any decision making tips?