Metro Manila (CNN Philippines) – In every waking moment of our lives, we take risks.
It could be something totally benign like trying out a new dish that could either be culinary perfection or just leave a really nasty taste in the mouth.
Or it could be something as major as putting everything on the line to chase your passion.
Taking risks is certainly par for the course in business, but if you’re a small-to-medium business owner, stepping out of your comfort zone can be extra-challenging because of the lurking fear that things might not work out the way you want them to.
But you would probably kick yourself over and over if someone made it big, banking on exactly the same idea you had not too long ago.
“I thought of that first!” you would say.
If you’re ready to forge ahead, here’s what you need to consider when taking risks and expanding your business:
1. Don’t overthink.
You’ve seen this in countless movies.
The bad guys are right on the heroes’ tails and their only escape: a big jump over a broken bridge. The steely-eyed driver grips the steering wheel tighter and puts the pedal to the metal.
The terrified passenger screams, “We’re not gonna make it!”
You can’t really blame the passenger. The reward of the risk that the driver is taking, freedom, seems insignificant next to the prospect of them plunging hundreds of feet to their deaths.
Although your business likely won’t involve you jumping over bridges, you, like many others, may tend to exaggerate what happens when things go wrong. Put another way, not everyone becomes a helpless swimmer when faced with a raging river.
Taking a risk doesn’t mean throwing caution to the wind. Things like thoroughly researching the market can help you develop a business strategy that not only promises a high probability of growth, but also helps you respond to problems along the way.
Related: Is it time to expand your business?
As many successful entrepreneurs have shown, taking risks can help you reach your business goals, but only if you’re willing to set aside the sometimes-crippling thought of failure.
2. It opens up whole new worlds.
Let’s say your business sells vinyl records because even though it’s larger than a dinner plate, a vinyl record is way classier than streaming music online.
From what you’ve observed, a lot of your customers are millennials who appreciate older music and baby boomers who want a taste of the good, old days.
You see a lot of them browsing through your collection after having a big lunch or carrying huge coffee cups in their hands.
And you sit there thinking, “Why don’t they just eat and drink here? They can even buy some of the awesome music I’m playing while they enjoy their meal.”
Eureka! You may have never aspired to go into the food-service industry, but a great opportunity has presented itself.
If you’re the type who plays it safe, you might just brand that idea as a “pipe dream.” But if you’re willing to take the risk, do the research and explore the possibility, you could be well on your way to providing something that no one else has.
3. Know if it’s worth it.
A risk is a risk precisely because there’s a chance of failure.
Imagine you have a crippling fear of drowning. But you need to swim to the other side of the river to get the cure that will save your loved ones. Will you risk the possibility of drowning for a chance to save the lives of people who are important to you?
When making a decision for your business, you have to constantly ask yourself, is it worth it? Don’t jump into every opportunity that you encounter. Perform due diligence and know what you’re getting yourself (and your business) into. Prepare an action plan to be able to make calculated decisions.
Will a renovation or purchasing of a new equipment help increase productivity and bring in more customers? Will it keep your business going and growing in the long run?
Learn to recognize the right opportunity and take the essential risk.
Thankfully, there are those who are willing to take that risk with you—such as BDO.
BDO SME Loan offers financing options with your business needs in mind.
Whether you want to acquire or construct a new warehouse or office space, purchase additional inventory or equipment, BDO SME Loan can help finance your expansion plans.
Choose a loan package that will match your business requirements—with competitive rates and flexible payment terms. Apply for a BDO SME Loan now!
To find out more about BDO SME Loan, click here.
