7 Ways to Reduce Entrepreneurial Risk

Practical Ways to Reduce Entrepreneurial Risk

The real challenge for you is to embrace good risk while avoiding ill-advised decisions that put your career, business, and personal finances in extreme jeopardy.

Exactly how you do this is up to you, but here’s some guidance from those who have walked in your shoes:

1. Create a Plan (And Stick to It)

When it comes to risk, few people understand what it takes to be successful more than investors and traders. They often talk about their choices in terms of “smart trading.”

According to RJO Futures, “Maintaining discipline and emotional distance is a key component of smart trading. Successful traders have the discipline to stick with their trading plan, while also maintaining the flexibility to seize upon developing opportunities.”

In your own entrepreneurial pursuits, you would do well to create a plan and stick to it. This ensures that you stay on track, even when emotions get in the way. This isn’t to say there aren’t moments where a deviation from the original plan is acceptable. However, you’ll often find that the urgency you feel to move away from your strategy is rooted in something less than objective.

2. Use Predictive Analytics

We operate in a business world where we have access to mounds and mounds of data, sophisticated algorithms, and powerful platforms that measure and predict risk. Tapping into these resources is a no-brainer.

If you’re new to the idea of predictive analytics, spend some time studying the topic. You’ll be amazed to learn just how much this technology is being used in large corporations and successful business ventures. Integrating it into your own entrepreneurial pursuits could prove invaluable.

3. Surround Yourself With the Right People

You are only one person. No matter how smart you are, or how advanced your intuition may be, you’ll never be able to properly reduce risk on your own. Your best bet is to surround yourself with people who are sufficient in areas where you are deficient. You want people who think differently than you and tackle problems from unique angles. This helps you see a risky proposition from multiple vantage points. The result is a diminished chance of catastrophe.

4. Medical Life Insurance Protection

Without health insurance, your family and business may be one major illness or injury away from financial struggles or even bankruptcy. Over four-in-ten people surveyed by the Kaiser Family Foundation in 2016 said medical bills had a major impact on their families. And nearly one-in-five people with medical bills problems said they declared bankruptcy. This is a devastating consequence for not only you and your family, but for your business – which means your employees, partners, and their families suffer the losses as well.

Take Charge of Your Future

It’s called “risk” for a reason. No matter how much due diligence you perform, or how well you follow a specific strategy, there’s always a chance that you could end up on the wrong side of a decision or investment. The best thing you can do is remain disciplined and use all of the information you have available to you in the moment. In doing so, you’ll find that your chances of success are far greater than the possibility of failure.

source: https://www.zenbusiness.com/

As entrepreneurs, we all have massive goals and lucrative visions. However, it only takes a single one of life’s catastrophe’s to delay your vision by years or destroy it altogether. It is always better to have insurance and not need it than need insurance and not have it.