If you have always dreamt about becoming an entrepreneur, it comes without saying; you would have to start taking calculated, positive risks. Bringing business is all about taking chances to achieve new heights in life. However, many are scared to take their first step.
Of course, any risk involved in business, there is always something at stake. In most circumstances, taking a risk in business means you stand a chance of losing money, your reputation as well as your time. Coincidentally, these are also the very same things you need for your success. On the other hand, the benefits of taking risk are that you explore new things, expand your boundaries, enrich your life and make your career more rewarding.
There is no standardized risk limits when it comes to business, and every person has their own limits or extent to which they can take their risk. So to analyze the level of risk that you can go ahead with, we are elaborating five different types of risk taking:
This is the characteristic of an entrepreneur who is not scared to take any risks in business and is extremely goal driven. Here, the entrepreneur applies less logic, but more speculation into business. Take the example of Warren Buffett purchasing all the Coca-Cola shares, when his colleagues and friends thought that he is out of his mind to take such a risk. Ultimately, the risk taken was worth it, and he became one of the richest men in the world.
Here, an entrepreneur is more calculative while taking risk. Although, he is not scared of stretching his limits, yet he analyzes the situation and then takes the leap.
Taking such kind of risk is an absolute necessity for any business. Of course, time, effort and money are at stake when you take the risk, but until you do not stretch your limit and let things take its time, it's quite difficult to expand your business and grow in your career. For instance, taking up a project without payment in advance; this is something that most businesses go ahead with to win customers.
Here, an entrepreneur may not be very eager to take risks like most businessmen do, but would like to keep his business modest and stick to an assured income.
Here, an entrepreneur is not at all eager to take any kind of risk. The businessman only wants few customers and a small-business. The opportunity for growth for such kind of businesses maybe very little, but there are no risk involved at all.
If you are wondering what kind of a risk taker you would be if you become or are an entrepreneur, iGoStartup has a fantastic business management tool, which helps you to understand what kind of risk taker you are. The tool also analyzes your management and analytical skills and is one of the most effective products in the market.