Three Things About Risk Taking You should know

Risk Taking is a common term in business which often comes up here and there. 

I’m sure you’ve been told by a number of people that life is all about taking risk. Failure to do so will slow your growth, or ensure that you remain stagnant in life. The media is littered with hundreds of rags to riches stories of some of the world’s richest and most successful people who describe the risks they took in order to reach their current status.

It certainly appears that risks are necessary, and in the end pay off handsomely. However, there are stories of people who took risks that landed them in debt, or caused them to lose fortunes. They have a different story to tell. 

Here are three things about risk taking you should always keep in mind.

Calculate the Risk 

Don’t just take risks blindly without thoroughly calculating the potential gains and even losses. Most people tend to calculate the gains, and rarely look at the loss side. So, eventually when it doesn’t pay off and they end up with losses they spiral into a depression.

Always calculate and measure your risk to find out whether they are worth taking. If its stocks or a project you want to put your money in, make sure you research about the company. Find out information about its owners, the type of business and whether or not it will be affected by factors such as technology or politics in the future. 

You don’t want to sell off a house to invest in aventure that will most likely have never succeeded anyway, and then find yourself homeless. 

Seek Advice 

Always seek advice from someone who has taken a similar risk in that venture you want to go into. They’ll be able to tell you the pros and cons of what you’re about to do. If possible, make sure it’s a total stranger, someone you know might want to sugar coat the process and they won’t fully divulge information.

Let Everyone Know 

Whilst too much consulting with people may lead to delays and procrastination, however its very important that you tell everyone who is close and dear to you, and who will be affected by this move know what you’re doing.

Be it business partner, spouse or children it’s just good to have them on your side, so when things don’t pan out well at least they won’t resent you for the rest of their lives.