Taking Safe Risks in Your Business

As you set the course for your organization in 2025, you may consider shaking things up and trying something new.

Leadership is a lot like being a rockstar. In order to succeed and move your “band” forward, you need to be willing to step out of your comfort zone, try new things, and take risks.

For many, the concept of taking risks is absolutely terrifying. A rockstar doesn’t know if a new style of music or a new image is going to land, but if they keep up the “same old thing,” they risk fading into obscurity.

Likewise, if a business doesn’t take chances, they could lose their market share and potentially no longer exist. We can see examples of this littered throughout the history books. Companies like Blockbuster, Toys “R” Us, and Sears failed to embrace the digital revolution and now serve as a warning for what happens if you don’t take risks.

So, how can you avoid becoming a horror story told to MBA students and take risks while still staying safe?

“Safe risks” may seem like an oxymoron. However, there are steps you can take to minimize potential negative outcomes.

Taking Safe Risks

Assess the Risk

What exactly are you attempting to do, and what potential problems could arise? Using a SWOT analysis could help you identify the challenges, benefits, and impact your risk could have on your organization’s health and future success.

Understand How Your Change Will Be Accepted in the Market

Conducting research like focus groups or surveys could help you test the waters and see if there is a need/desire for the change you want to make. If you survey your management, front-line employees, and customers, you may discover that it’s not worth taking the risk or there’s a different risk you should be taking.

Start Small

There’s no need to overhaul your entire business in one fell swoop. Make small changes, testing every step of the way and determining if the market (or your company) will support your changes. If the feedback you receive is positive, you can ramp up your transformation. If not, you can make adjustments before getting too far off track.

Create Contingency Plans

For just a moment, it’s okay to consider the worst-case outcomes. What could happen? Once you’ve identified this, it’s time to plan what you will do if it does. This provides a safety net in case you encounter any unexpected setbacks.

Lean on Your Support System

There are two parts to this tip. First, ensure stakeholders know your plan and the risk involved. If appropriate, communicate with employees as well. Second, reach out to mentors, colleagues, or experts who can help you identify potential blind spots or roadblocks and navigate them successfully. Keep them apprised of your progress and celebrate your wins or examine your losses together.

Embrace a Learning Mindset

Even if your risk doesn’t pay off in the way you expect and hope for, you will still learn from the experience. Embrace your mistakes or failures as opportunities to learn and do better. Evaluate what went right and what could have gone better. When you take your next risk, you will do so armed with knowledge and experience to move you closer to “success.”

Conclusion

"You can't be afraid of getting it wrong. It's the risk you take." - Bruce Springsteen

To succeed in your business, you must follow the lead of rockstars who have transcended genres and generations. This means evolving, pushing limits, and taking risks. Thankfully, when you follow the steps above, taking risks doesn’t have to be so risky!

For more information on rockstar leadership and teamwork, visit https://marvellessmark.com/