How Taking Risks Pays Off When You’re An Online Entrepreneur
Becoming an entrepreneur is all about risk. After all, to create a successful business, you have to be prepared to give it everything
you’ve got. Yet when you invest so much of yourself in something, it can be devastating if it fails. At the same time, when it succeeds, it becomes all the more rewarding for being something you built and grew yourself.
“Shoot for the moon. Even if you miss, you’ll land among the stars.”
Entering the world of e-commerce and online enterprise has become a popular means for aspiring entrepreneurs to take their first steps into the world of business. The flexibility and accessibility make it even more attractive to those who are keen to make their ideas reality, yet do not have the resources, time, or inclination to build a brick-and-mortar business.
Yet, while creating a simple e-commerce store may come with a lower financial risk, there is still extensive potential for investment. While you could play it safe and minimize your risks, you also minimize your chances of success. Meanwhile, having the confidence and determination to aim high and surpass expectations comes with more benefits than simply forcing you to test your own limits.
Confidence Is Compelling
By demonstrating your own confidence in your brand, you immediately encourage others to feel the same. The power of social proof is significant, and your enthusiasm for your business will generate positive feeling and a sense of goodwill. People enjoy seeing others succeed, so engage with your audience, celebrate milestones, and be an unwavering advocate for your brand.
As with so many things in life, approaching your business calmly and with commitment makes you far more likely to succeed. Your clarity will enable you to make better decisions, and your dedication will help you to narrow down your options to those that will further your business aims.
By contrast, under-commitment and uncertainty will make others feel less comfortable investing in your business and less trusting of your explanations when things go wrong. Often, it can be worse to act half-heartedly, than not to act at all.
Risks Are Not Gambles
There is a huge difference between gambling everything and taking a calculated risk. While sometimes you may need to put a lot on the line to secure the success you hope for, in general, your risks will be weighed against their potential return, and the consequences of failure.
For example, when launching a new product, you calculate the cost of production, combined with marketing and distribution, and determine how many units you would need to sell in order to make a profit. Combining this with projected sales figures then enables you to set an intelligent price point and determine your potential ROI.
This is not to say that you will never take a risk that could make or break your business. But if you do, you will have gone into it fully informed and determined to come out on top.
Growth Hacks Are Risk-Centric
A popular model for calculated risk is the MVP strategy. This hinges on releasing a product that meets requirements, but at the lowest viable standard. The risk lies in generating negative feedback and consumer dissatisfaction. However, this is balanced by the returns gained from early adopters, and from the positive feedback generated as you develop and improve the product.
As part of the process, your customers are able to feel more connected to the product, as they are directly influencing its development. In the meantime, you will have been able to produce a low-cost, low-spec version of your intended product, while also gaining valuable insights into the preferences and aspirations of your buyers.
Other growth hacks rely on referrals and encouraging users to spread awareness of your business on your behalf. However, many of the leads generated may not be useful, and could end up costing time and energy in failed attempts to convert them This in turn can skew your data and be fairly discouraging.
However, by segmenting your leads and constructing detailed buyer personas based on your consumer data, you can begin to identify useless leads and bypass them. Once again, the whole process relies on weighing the cost of implementation against the potential returns.
You Can Realize Your Potential
By taking calculated risks and seeing them through, you are able to realize, in both senses of the word, the limits of your ability. Not only does striving to surpass yourself enable you to discover what you are capable of, but it is also the only way you will ever reach that potential.
In contrast, while complacency and safe targets will enable you to maintain a steady course for your business, you leave no room for growth. Over time, this could mean that you fall behind the curve, causing your business to stagnate and increasing the work, and the risk, required to build it back up.
Every Failure Is A Learning Opportunity
When you set your targets high, it is inevitable that you will miss some of them. However, even this has value, as it gives you a more accurate idea of what is achievable, and enables you to identify the things that are holding you back.
Furthermore, when you fail to reach a goal, instead look at what you achieved along the way. While it may not have been quite what you were aiming for, it is important to take stock of your successes and be aware of your own value.
“Risk more than others think is safe. Dream more than others think is practical.” – Howard Schultz
As an online entrepreneur, you already have an idea that you believe in, care about, and know to be great. This should be all you need to give you confidence in your ability to succeed and create an online store that customers will love.
Just as your marketing efforts and your business itself will be shaped by its customers, so too will your efforts and enthusiasm shape the opinions of your audience. Your business can be an agent of change and a powerful influencer, as long as you are prepared to place your trust in your potential to succeed.
With each success, your brand’s authority and reputation will grow, and with each failure, your knowledge and capacity for improvement will increase. Over time, you will be able to take greater risks with greater confidence, and continually inspire the audience you have gone above and beyond to develop.ARTICLE BY VICTORIA GREENE, LEARN MORE HERE