What is your distinct approach to risk? Ever thought about it?
In life, it’s better to stick to a few simple values and aims; the same holds true for business. One guideline that you can rely on is that if a new business road has the potential to damage your brand in any way, you should not invest in it.
When it’s time to decide whether or not to go ahead, the decision must come from your heart. If you must pursue your passions, your ideas will be more likely to succeed.
I learned to follow my passions at the beginning of my career, when some friends and I created a community music program to give a voice to classical music, a less that sought after genre. As for the actual business aspects, such as paying the bills… well, we had to sort that out later. We just hoped that we would draw audiences to stay afloat and learn the business side as we went along.
With almost every venture I’ve gone into since then, I have made the move because I saw a gap in the market. It works.
Over the years, my colleagues and I have developed quite a reputation for risk-taking. It’s true that we have been fearless about taking on new businesses, sectors and challenges even when the so-called experts told us that we did not know what we were doing.
But while, to all appearances, we do have an unusually high tolerance for risk, our actions always spring from another principle: Always protect the downside. I think it should be a guideline for every entrepreneur, or anyone involved in business ventures.
Recently, I have made other bold moves into new businesses, financial services and coaching both nationally and internationally. It’s people who make a company exceptional or average. Like you, I have had to assemble a team of acclaimed experts.
Have you identified the gap in your industry?
Profit Engineer advises small business owners to not cut their own throats!
Every small business will have setbacks on the road back from the recession. Short profit years may influence a small business owner to cut back on unnecessary expenses, reducing inventory, employees or the amount spent on certain services. Owners must evaluate advertising dollars first. A small business owner can discover their average cost for a new customer by calculating their cost for advertising and the number of new clients that reach their store. If a small business owner spends fifty dollars for one new customer, then they must adjust their advertising campaign to lower the cost per customer. Although difficult to find out, business owners should not overlook this calculation. It may well be that small business owners have cut their very lifeline!