THE RIGHT WAY TO TAKE RISKS

A significant portion of managing a business is managing risk. Steve Layton, founder of Sofa Brands, explains that if you can manage those risks wisely you can seize opportunities to help your business gain an edge in the market.

Running a business is a balancing act between managing threats and pursuing opportunities: spend all your time and effort on threat reduction and you stagnate; chase every opportunity and you undermine what you already have. The key is to lay a stable foundation where you can take calculated risks. If they pay off, you achieve an edge in the market; if they don’t, you have a fall-back position that protects your business from sinking altogether.

Here’s how to plan for and take calculated risks.

  1. Ration your fuel

Every business should have a solid business plan behind it. It is critical that this is clear and detailed, right down to how much time you will invest in it, and how much money is required. Any cash burn should be planned, not unexpected. Read more

Gali Blacher - Dynamic Business - 8 Oct 2018

Comments

We welcome relevant, respectful comments.
Please read our Comment Policy before commenting.
We also welcome direct feedback via Contact Us.
You may also want to ask our librarians.

Be the first to write a comment