In today’s fast-paced world, our industries have become increasingly competitive, and as an entrepreneur, you learn very quickly that in order to thrive you have to be willing to take risks.
This shouldn’t be an issue as we’re told entrepreneurs are risk takers by nature, right? Well, admittedly, it’s easy to shy away from taking risks when money is involved. However, a lucky few of us figure out early on that there’s a misconception out there that risks and smart business can’t go together, and this simply isn’t true. In fact, in my experience, the decision not to take risks is often more detrimental to business than good.
When you decide to launch and run your own startup, you’re either going to sink or swim, there’s no grace period. Ultimately, you have to quickly wrap your head around the seemingly contradictory but imperative concept of smart business risks.
I was quite conservative when I first started Appscore, which I feel slowed our growth. To be a market leader you need be creative, you need to innovate and you need to take calculated risks. In recent years we’ve followed that path and although it can be testing at times, it’s worked for us.
Do your research, cultivate urgency, know your goals, know your budget and any other relevant constraints.
It has helped us to spearhead objectives, promote growth and create an impressive portfolio that boasts names including Mercedes Benz, Nestle and BP. This approach has helped us establish ourselves as industry front-runners in the mobile app development space.
If I had to break down the method behind smart business risk, this would be the short version: Do your research, cultivate urgency, know your goals, know your budget and any other relevant constraints.
Equally important is to know the difference between actual constraints and personal reservations. Reservations are innate and intuitive reactions to risk that for the most part prevent us from making poor decisions. Identifying whether they are warranted or not and casting them aside when merited is a skill that is learnt.
If you can construct your business’s processes with these elements in mind, you’ll be able to make smarter, braver business moves.
Additionally, exercise patience. A calculated risk won’t necessarily yield immediate results, but the results are often more sustainable and prosperous long-term. We have spent eighteen months nurturing a partnership with Telstra built on this premise and we are seeing fantastic developments.
As a team, it is critical that everyone openly embraces the smart business risk approach.
You want employees who have or are willing to learn how to think creatively and take calculated risks where there is advantage for your business.
When hiring employees, be sure to find out more than just their qualifications or experience on paper. You want employees who have or are willing to learn how to think creatively and take calculated risks where there is advantage for your business.
Our team is made up of industry specialists boasting exceptional technical and creative expertise. This has allowed us to cultivate and refine procedures driven by these elements, allowing us to take more calculated risks and achieve desired results quicker than competitors. As a business we excel at doing things quicker and better than our competitors, this doesn’t come without some bold, thoughtful decisions.
Risks are an essential part of any startup. As someone who has spent the past five years building a global business, I have learnt along the way that opportunity and success often don’t come without them. Risk spurs competition, which drives innovation, and innovation pushes us to new and exciting heights. When it comes to launching a startup business, be bold, be brave and strike while the iron is hot.
Alex Louey is the co-founder and managing director of Appscore.