Despite differences of detail, all definitions agree that risk has two characteristics: It is related to uncertainty, and it has consequences. If you want the freedom and financial success that entrepreneurship brings, you have to take the risk of losing money in a business start-up.
Despite differences of detail, all definitions agree that risk has two characteristics:
It is related to uncertainty, and it has consequences.
If you want the freedom and financial success that entrepreneurship brings, you have to take the risk of losing money in a business start-up. The boss of a company takes the risk of making nothing and he even risks losing money if the business goes bust. At the same time, they have the chance of making millions when the company does well.
How do you feel about it? What thoughts and emotions do you associate with the act of taking risks? Are they negative or positive?
The need for security is one of the things that keep us from taking risks. We have a need, as human beings, to want to stick to the familiar and predictable. We like things we can control and know well. Fear and doubt also keep us from taking risks.
But the very nature of life requires risk taking. A small child would never learn to walk, talk, or socially interact without taking risks, experiencing successes and failures, and then monitoring and adjusting accordingly.
Making mistakes is part of taking risks. The key is to learn from them and keep moving ahead. However, the question that still remains is how can you take calculated risks?
Calculated risks are those where the potential downside is limited, but the potential upside is virtually unlimited. The potential benefits of the risk should outweigh the potential losses if you are to take it so before you jump into anything always understand what you stand to lose and ensure that it is outweighed by what you stand to gain.
What is the worst that can happen? The second aspect of calculated risk-taking is to imagine all the things that could possibly go wrong when making a decision on whether or not to take a risk – but check yourself , we tend to think of the worst possible outcomes, whether they are realistic or not.. The trick is then to put all the measures in place that you can to prevent those things from happening. But be careful not to want to be perfectionist. You cannot possibly prepare for every outcome. You need to have some faith in yourself and that you will be able to handle whatever comes your way.
What is the likelihood of this happening? Be realistic. The fear may distort your objectivity, but try. Often you will find the likelihood to be small. If this did happen, could I live with the outcome? If yes, go for it. If no, then develop another plan.
Ask yourself what am I afraid won't happen? Sometimes we fear what won't happen as much as what will happen.
What are the benefits to you not taking this risk?
After you defend all your excuses, focus on the benefits to taking the risk. What are they?
Don't think that you've never tried this before, or that you don't think you can do it. Instead, work through the questions I’ve posed, weigh the outcome, and more often than you think, you'll benefit if you “Go for it.”
Posted 1991 Days Ago in: Coaching Articles
As a language teacher in Brazil, namely English and German, I have always been interested in my students' personal development. One trait that made me stand out from other teachers was that I maintained my students knew what was best for them to learn. Working as a bridge to where they deemed important to get to. This methodology happened to be quite similar to coaching.
Posted 1998 Days Ago in: Coaching Articles
Have you found yourself subconsciously repeating a particular phrase about why you can't do something? Why you aren't good enough for a promotion, a new job or change of career?