How to Manage Uncertainty and Growth Simultaneously

This article is written for small businessmen / entrepreneurs who keeps themselves away from Uncertainty and Risk, may be due to fear of failure.

Uncertainty is part and parcel of business. Have you ever seen any business who has not faced challenge of Uncertainty? Answer may be “No”.

So, what is Uncertainty? Is it same as Risk?

Uncertainty is a potential, unpredictable, and uncontrollable outcome; Risk is a consequence of action taken in spite of uncertainty.

For example, when you are not sure whether business will come while you bid for it, it is an Uncertainty. Whereas when you do some investment in anticipation of business that shall come, it is a Risk.

Ideally, no businessman like to take risk because of uncertainty, but if he doesn’t take a risk, he shall not get a business. So how to cope up with Risk of Uncertainty.

It starts with our attitude, how we look at things. Because wherever there is risk, there is an Opportunity. And if we wish to get that opportunity, we should explore calculated risk.

What is Calculated Risk? Calculated risk is a chance that is taken after a careful estimation of the possible outcomes. Or when the possible gain is worth more than what will be lost if the action fails.

Do Entrepreneurs take calculated risks? Successful entrepreneurs tend to take risks in ways that limit their potential losses. Entrepreneurs are not risk-takers, but they should be calculated risk takers for the growth of business.

Large Companies increasingly focus more on identifying risks and managing them before they even affect the business. The ability to manage risk will help companies act more confidently on future business decisions.

There are several types of Uncertainty and Risk comes in Business, day in day out. And if we manage to identify or calculate risk over an opportunity, we can reduce risk to the growth of business. There are systematic ways, one can identify Uncertainty, calculate risk and take decision in business.

Few known ways to identify Uncertainty are,

1.   Understand your current state of business and focus on what is within your control.

2.   Get your house in order.

3.   Use analytical techniques and Gather information and facts. ...

4.   Plan and be prepared for multiple outcomes. ...

5.   Evaluate risk - evaluate your initiatives on the inputs, not just the outputs.  

6.   Be agile and flexible, and strive to respond quickly

7.   Look for opportunities. ...

 There are many other ways to mitigate risk and command over growth of business.