risk 01Is it possible that what you’ve been doing–to generate revenue, increase gross margin and profit, create new offerings–turns out to be the risky approach? Isn’t it true that launching new efforts is what is risky?

I don’t think that’s true at all. The business landscape is littered with long-time companies that have lost revenue and market share as they continued to do what they’ve always done. They’re finding, to their shock, that the tried-and-true is no longer appealing to their buyers. Recent companies in the news include Urban Outfitters and Wal-mart. If Wal-mart can falter because it hasn’t tried anything new, you can be sure your company is not immune to suffering from sticking with the tried-and-true.

The point about risk is that there is a continuum, from avoiding all risk to taking X-treme risks. On a scale of 1-10, where is your business now? You most likely fall at or below 5.

Ask what new objective, goal or achievement would be risky enough to move you up the continuum a couple of notches? Write it down, start sharing it with your close colleagues, and set aside time and thinking space to  envision what it would take to reach it.

I’ve written about Speedy Strategy Formulation (TM) exactly for this purpose. You can easily take the 3 steps needed to formulate your strategy, which helps a risky idea pay off.

Do you want to emulate Wal-mart or Uber, old-style hotels or Airbnb? The founders of Uber and Airbnb took plenty of risks and are enjoying high returns. You can do this in your industry or niche too.