Whether or not you realize it, you take risks every day. Driving to the store to get groceries is a risk. Ordering something online is a risk. Deciding to supersize your drive-thru meal can be risky too.
Some are terrified of risk while others live for it. If you’re an entrepreneur you’ve already taken some fairly hefty risks and have lived to tell about it. If you have dreamt about becoming an entrepreneur but are still waiting for the right time, chances are you’re wary of risk.
Often it just takes a little time to examine the risk and determine whether or not it’s worth it. In his blog on Entrepreneur.com, Brian Tracy discusses the five different types of risk:
1. The risk that’s not yours to take.
Whether the risk belongs to your spouse, your brother or your business partner, this risk is the easiest to deal with because it’s not yours to take. While it may impact you in some way, you are not in a position to own this risk and must let the proper party take responsibility for it.
2. The unnecessary risk.
Unfortunately many take risks they believed were necessary only to find out later they were not. This is often the result of reckless decision making where risks are taken without first being studied. The results of taking an unnecessary (and thoughtless) risk can be devastating.
3. The risk you can afford to take.
When studying a potential risk you must weigh the cost of the risk against its potential for success. And monetary cost isn’t the only thing you must consider. How much time and energy with the risk consume? The same applies to success. While you should definitely be interested in the monetary return you may see, you should also consider how the success will impact your state of mind and personal satisfaction.
4. The risk you can’t afford to take.
This type of risk should be avoided. Again we stress the importance of studying a risk before making a decision. Often it’s only in running the numbers and weighing the pros and cons that you can determine the risk is much too pricey for you in your current situation.
5. The risk you can’t afford not to take.
And then there are those risks that have a potential payoff that’s too significant too ignore. Not only can you afford to take this risk, but you would be crazy not to. The more experience you gain studying out and taking strategic risks, the more skilled you will become at recognizing these valuable opportunities.
For those of you who have considered starting your own accounting practice, Universal Accounting Center is happy to tell you that doing so is probably a risk you can’t afford not to take. Rated as one of the best of the best home-business opportunities by Paul and Sarah Edwards in their book The Best Home Businesses for the 21st Century, a bookkeeping service is not only an inexpensive startup, but it’s a business with a huge potential client base.
When you enroll in the Professional Bookkeeper Program you learn everything you need to know in order to get started. But if that’s a risk you’re still not sure you can afford, you can learn more before making this important decision.
Purchase our video, Start Today and Have Your Own Bookkeeping Practice, for less than ten dollars and discover all you need to know about this venture. We can promise that it won’t take long for you to determine that starting your own bookkeeping practice is a risk you can’t afford not to take. Order the video now and decide for yourself. Or watch it online for free!
Tracy, Brian. “Taking Small Risks.” 9 July 2008 Entrepreneur.com