Testing the Waters: A Quick Guide on Making Calculated Risks

Testing the Waters: A Quick Guide on Making Calculated Risks

Risks are a part of any career, business venture… really life in general.

As a leader in business (or your own life), you'll be faced with risky situations. Unavoidably. Risk-taking is a critical skill to lead your life well because it determines how you can grow, advance, and thrive over time.

If you're thinking, "Well... Risks aren't for me. I'm a person that plays it safe."

Jim Rohn set the record straight on how “playing it safe”.... doesn’t exist.?

"It’s all risky.?
The minute you were born it got risky.
If you think trying is risky,
wait til they hand you the bill for not trying.
Getting married is risky,
Having children is risky,
Investing your money is risky,
It’s all risky.
I’ll tell you how risky life is, you’re not gonna get out alive..."

Notably, not all risks are worth taking because some could create huge losses in your relationships, career, business, or life.?

Here’s a breakdown on taking calculated risks and the factors you need to consider when making any decisions.


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Why Leaders Should Take Risks

Running a great life is all about grabbing opportunities when they arise. If you're risk-averse, you'll miss opportunities that could propel you, your values, and your quality of life forward.

Risks Give Room for Change

People that aren't open to change become obsolete, stagnant... stuck. For some reason humans are wired to fear change... and at the same time crave change. What's with that? We're wired to keep ourselves safe, but also naturally wired to desire to evolve. If change is constant, then make sure you're positioning yourself to benefit from the changes in your life.


Factors to Consider When Making Decisions

You need to take calculated risks. Otherwise, it could cost you your relationships, a good job, money, profits. (Oh wait. I'm supposed to be getting you confident about risks not fearful, huh.)

Here are factors you need to consider when making business decisions.

1. Decisions Should Align with Your Values or Goals

Don't make reckless decisions without checking whether they align with ALL of your values. Quick fixes, lateral moves, they're not worth it. Don't make a move that solves one problem but causes a dozen others.

2. Minimize Risk - Note What You Can Control.

As much as I'm advocating for risk taking... finding how you can minimize risk shouldn't be neglected. Knowledge, research, preparation, planning -- these are all things you can CONTROL. It's one of the main principles of 7 Habits of Highly Effective People . (Ironically one of the books most bought, but least read. But I digress.) Practice an internal locus of control and note what YOU are responsible for when stepping into a risky but potentially rewarding situation.

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Taking risks is part of being a leader, it's apart of life.

You'll need to decide which risks are worth taking and which are not. When making decisions, it's crucial to ensure they align with the business goals.

Just saying.

Do you want to read more on leveling up in your career? Head over to our blog section .?


Laura D.

◆ Tax Strategist to reduce your income tax 47-100% ◆ Business Intelligence - Grow $1-10MM+ ◆ Fractional CFO - Build a Financial Roadmap for your Business ◆ Speaker ◆

2 年

Great article Michael! In my experience with tens of entrepreneurs, I see how the decisions we take today determine where we'll be in 6 months, and the risks we assume today determine where we'll be in a years, a decade. I really believe that assuming risks that would propel our lives closer to our goals, is either a lack of vision, or simply a lack of leadership to follow through and commit our efforts to the vision we created. We all get there sometimes, and in those moments what we need the most is leadership via vision and breakthrough to make it back on the playfield. No one can play or expect to play in the big leagues unless they have a proven record of commitment and leadership. Love this!

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