Ethan Bavuu is a US Army veteran and the CEO of many successful e-commerce businesses. Apart from deploying ‘overcoming fear’ as a business tactic, he firmly believes that taking calculated risks offers great value to entrepreneurs.
Shedding light on his philosophy he says, “Risk is at the core of entrepreneurship. You are never quite sure if your idea is going to fly. However, there’s a difference between taking blind risks and taking risks that are calculated and thought through. Blind risks are risks that one takes either when one is at the end of one’s wits or worse, has no wits at all. A calculated risk, on the other hand, shows that the entrepreneur has given his/her choice a lot of thought, felt it important, and while hoping for the risk to bear fruits, made preparations in case of failure. The latter is better prepared to cope with both success and loss. And that attitude ends up becoming the attitude of the company and in the end, determines its perception in the marketplace.”
Taking risks is inevitable. Sometimes it gives favorable returns. Sometimes it does not. But it’s the best defense entrepreneurs seem to have against rash and blind risks and the unsavory consequences they can bring about. Ethan adds, “Every serious entrepreneur values knowledge. They are deeply involved with their product, keep a keen eye on the competition, and possess a thorough understanding of the market. In studying these trends, they put themselves in a position to gauge the pulse of trends, changes, and current scenarios. This allows them to pick their risks, weigh the pros and cons, and in all likelihood prepare for either of those consequences.”
The ability to take calculated risks may have the potential to give some entrepreneurs an edge over others. It allows them a hawk-eye vision that blind risk-takers might miss in their rushed assessment and often lack of knowledge. Ethan adds, “Taking calculated risks is as thrilling as taking risks goes. They have the sense of the unknown, of a nail-biting wait and high adrenaline that’s mixed in with the right amount of knowledge and information.”
Risks make the world go round. Calculated risks, perhaps keep the world from spinning out of control. As a business owner and entrepreneur, you are most likely driven to go against the grain. Taking calculated risks doesn’t blunt the edges of your spirit, it perhaps lends a hand in making your success fruitful and conscious.