One gentleman by the names Henry Kravis once said; ‘A real entrepreneur is somebody who has no safety net underneath them.’ Now, you may or may not agree with this – and that is your business anyway – so I won’t interfere with your judgment. But I guess you appreciate one element that sometimes makes an entrepreneur very exposed – that is business risk. Occasionally when you meet a person who has a skewed idea about this thing called ‘business risk’, you just see someone who will not invest a dime, no matter what language you use to entice him or her to invest. Haven’t you met such? And yet there are also guys outside there that are attracted by risky ventures. But what must an entrepreneur know about business risk?
- Business risk may be psychological or real – but neither should hinder you from pursuing your entrepreneurial dreams. For a start, if you think business risk will kill you, emigrate from the entrepreneurial planet – and find space to settle in a planet with minimal risk. Moreover, you can’t totally avoid risk, can you? Many aspects of life entail risk. Additionally, if you can’t define the risk and quantify it in monetary terms (though some risks are quite difficult to quantify) then you may just be having a ride under the umbrella of risk. Sometimes even other people can create unnecessary fear in you as a strategy to discourage you. You have come across some people who tell you not to dare with a certain type of business – when they are raking in tens of millions in profits in such or similar enterprises, haven’t you? If for example, you can’t start an enterprise simply due to fear of competition, then you can’t be an entrepreneur.
- The scope of risk is wide but you need to know and manage the areas that mostly affect your enterprise. Business risks include all things that threaten your enterprise’s survival, sustainability and growth, profitability etc and these factors may be classified into country, compliance, concentration, credit default, debt recovery, currency, investment, interest rate, liquidity, trading position, operational, reputational, pro-cyclical, environmental, technological risks and others as may be relevant. These risk areas come with a host of factors that can trigger related risks. Don’t you think so? Even aspects such as the level of investment, scope of operation, people involved etc can create business risks.
- Knowledge should eliminate or minimize the impact of risk. Just imagine that you come across a friend or relative who invested half a million dollars in an enterprise, without any knowledge about the dynamics of that enterprise – I mean the core things that make the business work or not. He or she may just look blank after losing all the money – while you are boiling about his or her level of ignorance. But the money is gone – their money, and not your money anyway. Now, investing without adequate information is more risky than business risk itself, isn’t it? Knowledge should eliminate or minimize risk. Ever wondered why big enterprises hire damn expensive risk managers? Expensive knowledge is many times cheaper than ignorance – your enterprise can avoid losing fortunes by making use of knowledge, no matter the cost. Many enterprises today deploy risk management tools that add a lot of value to the business. You have to understand the risks, know that risks change with various factors, understand their impact, plan for them and assess the impact of your intervention. There’s no short-cut.
- Risk is a trade off – usually the higher the risk the more the returns. Now, you may ask yourself why things are this way. That is a topic for discussion on another day. But do you think you can just do what every Tom, Dick and Harry does – including where and the way they do it – and you make it big? Of course not. You have to go beyond the normal into the abnormal and the unknown – with all the associated risks. Fishing in deep waters brings forth a big catch. Are you getting what I’m saying? If you are a risk-averse entrepreneur then you can only settle for peanuts in returns. Why not venture out to the risky areas and check them out?
In summary, it’s vital for an entrepreneur to know some key facts about business risks. Many aspects of enterprise management are associated with risks. Investing resources, procuring machinery, production, engaging personnel, launching into new markets, researching and developing new markets etc all have elements of risk in them. As a wise entrepreneur, you should strive to understand and manage risks – otherwise risks will manage you – and eventually you will become a risky entrepreneur. Try and thrive on calculated risks. Millions of individuals and enterprises have done it and they have been successful – what about you? You are not a failure – or are you?
The Wise Entrepreneur
excellent submit, very informative. I wonder why the opposite specialists of this sector do not notice this. You must proceed your writing. I’m sure, you’ve a huge readers’ base already!
I have been examinating out many of your posts and i can state pretty nice stuff. I will definitely bookmark your blog.
You are my inhalation, I possess few web logs and occasionally run out from brand :). “Follow your inclinations with due regard to the policeman round the corner.” by W. Somerset Maugham.
Keep working ,great job!
Hello my family member! I wish to say that this article is awesome, nice written and come with almost all significant infos. I’d like to see more posts like this.
Would you be thinking about exchanging hyperlinks?
I discovered your weblog site on google and test just a few of your early posts. Proceed to maintain up the very good operate. I simply extra up your RSS feed to my MSN News Reader. In search of forward to reading extra from you in a while!…
I only wish that the Internet had much more information like this. I’ve never read anything like it.
I really appreciate this post. I have searched everywhere for this! Thank goodness I found it, thanks for the information
I like this post, enjoyed this one thanks for putting up.
I really appreciate this post. I have been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again!
Have you ever thought about publishing an e-book or guest authoring on other blogs? I have a blog centered on the same ideas you discuss and would really like to have you share some stories/information. I know my visitors would enjoy your work. If you’re even remotely interested, feel free to send me an e mail.
you’re really a good webmaster. The website loading speed is amazing. It seems that you’re doing any unique trick. Moreover, The contents are masterpiece. you have done a great job on this topic!
Thank you for sharing excellent informations. Your website is so cool. I’m impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found just the info I already searched all over the place and simply could not come across. What a great web site.
Have you ever thought about writing an e-book or guest authoring on other blogs? I have a blog centered on the same information you discuss and would love to have you share some stories/information. I know my subscribers would appreciate your work. If you’re even remotely interested, feel free to send me an e mail.
Sure, I don’t mind.
I’ve recently started a site, the info you provide on this site has helped me greatly. Thank you for all of your time & work.
I have recently started a web site, the information you offer on this web site has helped me tremendously. Thank you for all of your time & work. “My dear and old country, here we are once again together faced with a heavy trial.” by Charles De Gaulle.
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to far added agreeable from you! By the way, how could we communicate?
I merely want to reveal to you that I am new to having a blog and genuinely loved your review. Very likely I am prone to save your blog post . You really have impressive article material. Be Grateful For it for telling with us all of your site post
Hiya, I am really glad I have found this information. Today bloggers publish only about gossips and web and this is really annoying. A good blog with exciting content, that’s what I need. Thanks for keeping this web-site, I’ll be visiting it. Do you do newsletters? Cant find it.
When I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a comment is added I get four emails with the identical comment. Is there any approach you’ll be able to remove me from that service? Thanks!
You need to undo this from your side. Consult someone to get it done for you.
Good – I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or something, website theme . a tones way for your client to communicate. Excellent task.
This design is incredible! You definitely know how to keep a reader amused. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Excellent job. I really loved what you had to say, and more than that, how you presented it. Too cool!
Hello, Neat post. There is an issue together with your website in internet explorer, could check this¡K IE nonetheless is the market leader and a big section of people will miss your wonderful writing due to this problem.
Keep working ,impressive job!
Hi there, You’ve done a great job. I’ll certainly digg it and personally suggest to my friends. I am sure they will be benefited from this site.
You actually make it seem so easy with your presentation but I find this matter to be actually something that I think I would never understand. It seems too complicated and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!
I抎 need to verify with you here. Which isn’t one thing I often do! I get pleasure from reading a submit that may make people think. Also, thanks for allowing me to comment!
Hello there, just became aware of your blog through Google, and found that it is really informative. I am gonna watch out for brussels. I’ll be grateful if you continue this in future. Many people will be benefited from your writing. Cheers!
Hi there, I discovered your web site via Google whilst searching for a similar topic, your web site came up, it seems great. I have bookmarked it in my google bookmarks.
Nice blog here! Also your website loads up fast! What web host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as fast as yours lol
Wow, amazing blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is magnificent, as well as the content!
Thank you for any other fantastic article. The place else may just anybody get that type of info in such a perfect way of writing? I’ve a presentation subsequent week, and I am at the search for such information.
Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how could we communicate?
I like the valuable information you provide in your articles. I’ll bookmark your weblog and check again here regularly. I am quite sure I’ll learn a lot of new stuff right here! Best of luck for the next!
It is actually a great and useful piece of information. I am happy that you simply shared this helpful information with us. Please keep us up to date like this. Thank you for sharing.
Great ¡V I should definitely pronounce, impressed with your site. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Nice task..
I like the valuable information you provide in your articles. I’ll bookmark your blog and check again here frequently. I’m quite sure I’ll learn many new stuff right here! Good luck for the next!
Just desire to say your article is as astounding. The clarity in your post is simply spectacular and i could assume you are an expert on this subject. Fine with your permission let me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please keep up the gratifying work.
Great – and thanks.
It¡¦s actually a nice and useful piece of info. I am satisfied that you just shared this helpful information with us. Please keep us informed like this. Thanks for sharing.
Well I sincerely enjoyed reading it. This post provided by you is very useful for correct planning.
Welcome, and please share this site with as many as you can. Cheers
Hey There. I found your blog using msn. This is a really well written article. I will make sure to bookmark it and return to read more of your useful information. Thanks for the post. I’ll certainly return.
I am not sure where you are getting your information, but great topic. I needs to spend some time learning more or understanding more. Thanks for wonderful information I was looking for this information for my mission.
I¡¦ve read several just right stuff here. Definitely value bookmarking for revisiting. I wonder how much attempt you put to make this type of excellent informative website.
I truly wanted to type a small note in order to thank you for these unique guidelines you are giving on this website. My considerable internet research has finally been rewarded with useful facts and strategies to talk about with my family and friends. I ‘d declare that we site visitors actually are really lucky to exist in a useful site with very many marvellous professionals with great basics. I feel truly lucky to have seen your webpages and look forward to many more amazing minutes reading here. Thanks a lot again for all the details.
It’s indeed motivating to us to know that we are providing useful information! Thanks, and welcome.
hi!,I really like your writing so a lot! share we communicate extra about your article on AOL? I need a specialist on this space to solve my problem. Maybe that is you! Looking ahead to look you.
You can communicate more to [email protected] if required. Thanks
Good article and right to the point. I don’t know if this is truly the best place to ask but do you folks have any thoughts on where to get some professional writers? Thanks 🙂
Super-Duper website! I am loving it!! Will come back again. I am taking your feeds also
Thanks – and welcome!
hello!,I love your writing so so much! share we be in contact more about your post on AOL? I need an expert in this house to resolve my problem. May be that’s you! Having a look forward to see you.
As a Newbie, I am always searching online for articles that can aid me. Thank you
Thank you a bunch for sharing this with all folks you actually recognise what you are speaking approximately! Bookmarked. Please additionally talk over with my site =). We can have a link exchange contract between us!
I think this is among the most vital info for me. And i’m glad reading your article. But want to remark on some general things, The website style is perfect, the articles is really great : D. Good job, cheers
Thanks for the acknowledgement. Cheers
What i don’t realize is if truth be told how you’re not actually a lot more well-preferred than you might be right now. You are very intelligent. You understand therefore considerably in terms of this matter, produced me in my opinion imagine it from a lot of various angles. Its like men and women are not involved until it is something to accomplish with Lady gaga! Your own stuffs nice. Always handle it up!
I appreciate the acknowledgement. Rgds
It is the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I want to suggest you few interesting things or tips. Maybe you could write next articles referring to this article. I wish to read even more things about it!
I will try and write more articles on this topic.
Hello There. I found your blog using msn. This is a very well written article. I will make sure to bookmark it and return to read more of your useful info. Thanks for the post. I will certainly comeback.
Hey There. I found your blog using msn. This is an extremely well written article. I’ll be sure to bookmark it and come back to read more of your useful info. Thanks for the post. I’ll definitely comeback.
I am just writing to make you know what a nice discovery our child found going through your web site. She came to find numerous pieces, which included what it is like to possess an awesome giving spirit to have other people with no trouble gain knowledge of certain complex things. You undoubtedly did more than my desires. Thank you for presenting such practical, trusted, informative and also unique tips about that topic to Janet.
I’m very much humbled by your appreciation. Thanks a great deal. Send my regards to Janet.
Good write-up, I¡¦m regular visitor of one¡¦s website, maintain up the nice operate, and It’s going to be a regular visitor for a long time.
Might be mostly not possible to encounter well-advised users on this area, in addition you look like you fully understand those things you’re writing about! Regards
Hi folks here, just turned aware of your web page through Yahoo and bing, and realized that it’s quite interesting. I will be grateful for if you decide to maintain such.
I just wish to inform you you that I am new to blogging and utterly liked your website. Probably I am going to save your blog post . You really have great article information. Truly Appreciate it for telling with us your own internet site write-up
Genuinely significant information you’ll have said, thanks so much for adding.
Absolute engaging highlights you’ll have remarked, thanks for publishing.
Welcome. It’s a pleasure.
I simply desire to tell you that I am new to posting and undeniably loved your site. More than likely I am going to store your blog post . You literally have lovely article materials. Get Pleasure From it for discussing with us all of your site write-up
I simply want to mention I am just newbie to blogging and definitely loved you’re website. Most likely I’m likely to bookmark your blog . You amazingly have beneficial articles. Many thanks for revealing your webpage.
Fabulous, what a web site it is! This website provides helpful facts to us, keep it up.
Welcome – and enjoy the site.