Tuesday, 2 November 2010

Risky Business

If I learned anything while studying business it was that risk is an inherent part of any corporate activity. It's there. It's always there but it can sometimes be a good thing.

How can risk be a good thing?
Well, most people avoid it like the plague so doing the complete opposite will open up a lot of opportunities. However, at the same time- it could be detrimental and costly if done without thought.
Capitalising on risks takes a few things and they're not too overbearing, they just take time and thought:
  1. Analyse why others are avoiding the risk. Is there any potential benefit in it? It is a one-shot idea? If you can't feasibly create something out of it- don't take it just for taking it.
  2. What kind of market is it in? Is this an over-saturated market? High barriers to entry? Intensly competitive? Sometimes there's a sure fire idea...it's just in the most difficult place.
  3. Does it have potential? A good idea is a good opportunity but it could fall on hard times if, after the initial idea, there's nowhere to develop further and you're left with a good but dwindling profit product.
  4. What's the cost? Today, tomorrow and the next day you're going to be focused on costs- how much will this cost? How many times? Even great (and profitable) ideas can prove to be too much of a cost.
I'd say, on average, if you can get three out of four of these in the positive it's probably a great idea to run with the risk.
I know especially since the global recession people have become even more risk averse but there's a lot of potential in risks. Startup organisations are considered to be incredible risks- but some are amazing popular and profitable.
Look at Twitter, for instance.
When it was set up most people did not appreciate the depth of micro blogging and sharing snippets of information. Today it has millions of users! You really can't afford to be shy in the field of infinite potential that is business. If you can think of an idea, a product or even a service that you can market- then you should give it a go!

Better to give it a go than never know, right?

Thank you for reading and feel free to share some of your corporate risk stories! It's always good when we show each other what we've been through, so that, in the future, others can realise we can succeed even in the most bleak of times.

All information presented here is © copyright Carkean Solutions Ltd., 2010 - Not to be used without our permission - The views expressed here are the views of an individual not the corporation

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