Do you know what’s riskier in business than taking risks? Not taking risks. Many promising startups have failed in the first few years of their establishment because they did not entertain uncertainties or take major risks in the market. But if success is to be achieved in entrepreneurship, taking risks is a factor that cannot be done without. In fact, it is a frequent part of the process. This is because there’s no guide or template per se to follow, the business and market change spontaneously and you have to keep up with them.
Some hindrances to taking risks are the fear of the unknown and failure. However, there are businessmen whose trademarks involve the act of spontaneously taking risks, yet they always seem to get away with it and even make more money from the risky decisions. How do they do it? It’s almost like they can see the future. Or are they just always lucky? If you’re interested in knowing what the secret behind it is, it’s our pleasure to introduce you to one of such businessmen who have mastered the art of risk-taking in business — Samuel Onuha.
Samuel Onuha is an entrepreneur and renowned online retailer. The Dutch businessman has made quite a name for himself in the industry and is committed to helping other entrepreneurs achieve success by sharing his wealth of knowledge and experience to help them make informed decisions. As a prolific risk-taker, he shares tips in this article on how to take calculated risks and manage uncertainties in business.
One particular trait about Samuel that has made him so successful is that he’s an aggressive businessman. He makes impulsive decisions and executes ideas and plans in business quickly. You would agree that this trait increases his chances of making mistakes and making them often. Although he admits that he does make mistakes, it may surprise you to know that he doesn’t make them often. When making these impulsive decisions, is he absolutely sure of the outcome? Certainly not. In his words, he says, “I sometimes have doubts about my decisions, business-wise; I’m not a super-hero or always a 100% correct. On average, about 80% of my risky decisions turn out good, while the rest turn out bad. However, one thing I do is to always take responsibility for the few times I fail, and of course, learn from them.”
Another hindrance to taking risks entrepreneurs have to overcome is dwelling on regrets. According to Samuel, when you realize that you can’t turn back the hands of time, you learn not to dwell too long on regrets, but learn from them and move on. One bad risk shouldn’t discourage you from taking risks anymore. When a risky decision turns out bad, Samuel chooses to see it not as a failure, but as one way his plan or idea won’t work. So he tries another way. In Samuel’s world, it’s all about the mindset.
And of course, there’s the good side to making calculated risks, especially when they yield tremendous results. The higher the risk, the higher the expected return. Samuel acknowledged this fact by saying that taking risks has helped him accelerate quickly in life. People are usually surprised at where he is in life now and how fast he has grown at such a young age. He is far ahead of his peers and even many older than he is. Samuel attributes this to his flair for making impulsive decisions and taking risks that others are too scared to take.
How do you make calculated risks? Samuel has some nuggets on this to share:
1. Identify the Risk
Risks arise due to several reasons but in 5 major forms. They include competitive risk, market risk, financial risk, technology risk, and credibility risk. The first thing you need to do is identify what risk you’re about to delve into. By so doing, you can work out strategic plans on how to either mitigate the particular risk or adapt to it appropriately.
2. Explore and Weigh Options
After identifying the risk, explore possible options you can take, and weigh them against each other. You also need to be careful so one risk doesn’t lead to another. In a bid to solve a technological risk, for instance, be sure it doesn’t tend to lead to financial risk. You don’t have to analyze the situation alone, you can get help from professionals.
3. Take Action
From your outlook of the situation, take decisions on what to do and do them. Don’t be scared, believe in your plan, and be optimistic.
4. Document and Review Outcome
As you take action, document the outcome they yield and periodically review them so you know whether to continue with the plan, modify it or stop it entirely.
