Risk is inherent in business. Launching your business is a risk. Moving to a new office is a risk. Hiring your first employees is a risk. And the list goes on and on.
At any time, taking a risk with your SMB is scary, especially if everything is going well. It’s so easy to be complacent and ride the waves of success without pushing out of your comfort zone.
Case in point: people often tell us that it’s “just not the right time” to switch to a digital inventory and order management system. They think it’s too risky for them. They think the potential negatives outweigh the positives.
But that may not be the case. Taking the right risks can pay off immensely, particularly with digital transformation.
Let’s take a closer look at business risk taking, the importance of risk in business, the potential benefits, and how to do it right.
The importance of risk in business
SMBs can benefit from taking the right risks with the right approach. Here are four examples of the importance of taking risks in business:
Learn and grow
Business risk taking encourages you to learn about your business in new, potentially exciting ways. You can discover more about your team’s passions or develop new skills as you try to overcome challenges.
Risks lead to new opportunities
When you take a risk, you may find amazing new opportunities to solve customer problems and leverage your workforce’s skills. Your SMB might not always succeed when you take risks, but you can pinpoint new ways to satisfy your audience and expand your offerings.
And who knows? You may take your SMB in profitable new directions based entirely on risks you almost didn’t take.
Business risk taking leads to competitive advantages
Say you’ve identified an entrepreneurial risk that might be worth taking. Surely your competitors know about it, too? And surely they’re planning to take it soon, right?
Not necessarily. Other business leaders may weigh the potential for success and failure and then decide they’re unprepared to take the risk. But if you don’t go for it, a competitor might eventually — and come out on top.
Taking a risk could work out in your favour and give you a competitive edge. It’s not guaranteed, but it can pay off with enough planning and commitment.
Risk forces evolution and change — often for the better
If you never take risks and explore new territory, how will you know how far your SMB can go?
Business risk taking can be intimidating because of the possibility of failure, even on a small scale. But a well-calculated risk also creates the opportunity to succeed. You may need to push your SMB in bold new directions to achieve a positive outcome.
Whatever the specifics of your risk, taking it could be the first step in an exciting new era for your business.
How to take business risks the right way
Your SMB may take any number of different risks. But let’s say you’re considering switching to an automated inventory management system instead of relying on manual processes. Many companies have taken this step, but that doesn’t make it any less risky for you and your team.
Let’s explore the right approach to mitigate that entrepreneurial risk and increase your chances of success.
Consider your timing carefully
Timing is crucial. Pick the wrong month to embark on your new business adventure, and you could run into issues sooner than you expect.
Avoid business risk taking during your busiest seasons. Focus on delivering the products and services your customers expect. Make the most of these periods and avoid unnecessary risks.
Try to anticipate how much time a transition will take as accurately as possible. Allow extra time for possible hiccups along the way.
Just keep in mind that a transition like this could be quicker than you think. Workhorse enables businesses to be up and running on a new system in as little as one week. That minimises the potential for costly disruptions and delays.
Examine your reasons for hesitations
There are always reasons to avoid business risk taking. You’re too busy. You’re taking on new staff. You’re concerned that the risk is too … well, risky.
You can come up with plenty of reasons to hesitate, but you may not need to. Why? Because the benefits of good risk often outweigh the negatives.
Switching to an automated order and inventory management system like Workhorse offers the following benefits:
- Save money with better inventory management by reducing overstocking and waste.
- Boost productivity and streamline processes, so you can do more with your time.
- Minimise errors and increase your accuracy.
- Bring your business into today’s digital economy, leaving behind outdated tools like spreadsheets.
These are just a few benefits to think about when you need reasons to take the leap.
Risk works best with the right partner
You’re more likely to succeed when you take risks with support from the right people. You need to find partners to help guide you through business risk taking and achieve your goals.
Work with a team that has gone through the process before and understands how it flows. Take advantage of their experience, ask what lessons they’ve learned, and always be willing to ask for help. Digital transformation will be smoother and simpler with specialists in your corner.
Let Workhorse guide you through the right risks for your business
Feel inspired to try automated inventory and order management? Workhorse makes it easy to transition to automated inventory and order management software.
Here’s how we can help:
- We provide personalised and in-depth onboarding to get you up to speed quickly.
- We offer customer support from real people via your preferred channels (e.g. email, phone).
- We use our years of hands-on experience to guide SMBs through the process. As an SMB ourselves, we know how scary taking risks can be — and how rewarding. We’ll help you get where you need to go.