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Issue 00534 |
September 6 - 12, 2008 |
issn 0856 - 9135 |
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Breaking Barriers |
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Risk Threshold of Your Business
BY GEORGE ‘GBENGA OLOWOYE
As you make the move from the position of employee to self-employment, the risk threshold can be aptly described as the level at which a psychological or physiological effect or state starts; also called the threshold of consciousness. You have to become very conscious of the decisions that you’re embarking on in order to make the most of your business endeavour. Roberto Goizueta, chairman of Coca-Cola, once said: "If you take risks, you may still fail; but if you do not take risks, you will surely fail. The greatest risk of all is to do nothing." What to do? First, recognize that few things in life come with a guarantee. A certain level of risk is unavoidable. Overly-cautious businesspeople waste a lot of their financial and human resources trying to avoid risk. Businesspeople would be better advised to learn how to affectively minimize the adverse effects of risk. You may want to learn here some things you can do to make taking risks a joyous and incredible experience in your business endeavour. It is important for you to always establish cut-off points to indicate the limits beyond which you will not go. Always try to use strengths to your advantage in assessment of risk. This way, the more calculated you are, the better your earnings. Ultimately, your business dealings should give you better profits and competitive advantage. Another consideration in risk taking is the paramount need for you to maintain control by delegating risk and responsibility rather than simply exercising your authority. You will continue to need people and crucial networks to make your dream possible. The internal risks that your business must confront at all times include issues dealing with the structure of your company, management systems, caliber of staff, power fluctuations, irregular supply of raw materials, non existent research unit to update information, etc. All these setbacks and risk elements should still not make you to loose focus and balance as you strive to do the impossible and create a super-working business model that you set out to achieve. Now, if you encounter failure despite all your permutations and planning, take the responsibility for it, decide what went wrong and take the necessary corrective steps. Some of the external risks you must always look out for include unwarranted political climate, foreign exchange fluctuations, inadequate alternative for source of funding, adverse government policies, competition, etc. Despite all these odds many businessmen and women are still succeeding in our environment and you ought to make up your mind early to cross the hurdles as well. Let me now come to the aspect that most entrepreneurs and business people usually have great conflicts. It is the reluctance to obtain the necessary financial and human resources to deal with risk by being willing to share the potential rewards with others. Reduce the intellectual and financial sides of risk by using other people's brains and other people's money. Then be kind enough to share your winnings and rewards with those whose brain power you engaged when the time arrives. Your aim in business should be challenging enough to ensure adequate returns and growth of business but never adopt the, "I'll make this work if it kills me" attitude. Also, don't ever countenance it in those you work with. Be aware of weaknesses and underscore them. However, instead of trying to avoid risk, seek it out. Weigh the possibilities for gains and losses. And when the odds seem to be in your favor, move boldly ahead. Always watch what others are doing and ask questions in order to take good risk. Finally, once your
business decisions are made, go ahead and implement them. You will never build
self confidence by procrastinating or fear. As they say in the sports field: "No
pain, no gain."
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