Risk is something that is avoided by many people. Some even do not get into business because they are afraid of risks. Risks have been known to be the cause of business downfall, but very little is known that risks can also serve as a catalyst for business growth. When risks arise, businesses are put in a disruptive and uncertain environment. At times like these, the capacity of an entrepreneur to manage risks is tested.
Avis Philippines, once saw itself in the verge of losing its business. Luckily, the decision making and management was handled to Mr. Fereria, he is known in the industry as a turn around master. Because of his skills, Avis was able to make a comeback in less than a year. Magic and luck does not always work in risky situations, what one needs are the right knowledge and skills to avert risks.
Here are five ways on how to take better risks:
- Build confidence. Before taking big risks, start withl little ones. Expose only the amount of money you can lose. When you start winning, you will gaining confidence and you can move to much bigger risks
- Be with risk takers. If you want to know how entrepreneurs take risks, be with them. Learn what type of risks they take and how much they expose depending on the risk. Also learn how they handle failures.
- Manage risks. The best way to handle risks is to manage them. You have to know the risks involved and have a plan for averting them. Only those who don’t manage risks fail in business.
- Share the risk. Don’t be too greedy. You have to share the risk and rewards. When you share the risk you also lower your exposure, so it is not going to be painful if you lose with someone than losing all alone.
- Focus on the rewards. To be able to take risks, the rewards must be truly rewarding. Use the reward as a motivator, this way you are inspired to work. And stay optimistic. When you are positive you can work better and smarter.
Risks do not have to be threatening to the business when you know how to manage them. Put the skill into practice so that you can avert risks and reap the fruits of a well managed business. Happy risk taking!
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