Coco Chanel was a woman of many firsts when it came to business. She stood independently in a time when a woman doing so wasn’t quite the norm. After all, she was the first woman to ever brand a perfume with her name as the label, the first woman to ever wear trousers and she single handedly revolutionized the little black dress. Her independence and business risk taking brought her from a girl out of the orphanage to one of the leading luxury designers still to this day. Although she is not physically of this world anymore her name and brand continues to live on and is a huge name in the designer world. That being said what are the factors to consider before deciding to take that business risk? A risk is just that, something that is not guaranteed and could end up hurting you and your brand in the end. Other times a risk can be just what was needed to push both you as the business owner and your business/product to the next level. It doesn’t have to be just in the fashion industry but can relate to all avenues and types of business. Coco Chanel proved that taking a business risk could ignite success in the fashion world, but what about other businesses, think marketing, garage door companies, even pool deck and concrete coatings. Yes, the diversity of the businesses I just mentioned is huge but when it comes to risks in business it pertains to ALL types of business.
Questions To Ask Before Taking A Business Risk
- Is the business risk you are considering spontaneous? As in have you really taken the risk you are considering into careful consideration? Is it an idea you have had for some time? The longer you have been contemplating the risk the more sound of a decision to take it, it may be.
- Worst Case Scenario? Have you thought of what would happen should your risk you take fails? Looking at the risk from the worst case scenario view point and how you might deal with it gives you a little more control over the outcome should your risk fail
- Will the business risk help you grow should it work? Have you also thought of what the overall benefit would be should you succeed at taking this risk? As in, does taking this risk and what goes into it make sense with the benefits or growth that you would gain.
- If the risk starts to fail will you know when to get out? If the business risk you are after is proving to not work will you know when to let it go and move on or start on another strategy? This is VERY important because if you should continue to try at something that is not working you can only get yourself and/or business into a deeper hole with greater negative side effects.
Taking a risk in any aspect of life is just that a risk. There are no guarantees, no concrete proof that it will work out in your favor. Coco Chanel didn’t let that stop her because she believed in her abilities, what she was doing and which directions in fashion consumers may take if they were introduced to something new. Do your research, think your potential risk through thoroughly and have confidence in yourself and your business abilities. But do NOT become over confident because many time you may lose sight of when to back down and let things go.