Should we take the riskier road in order to grow?

Dear Aunty B,

We are launching a new project and fingers crossed it will be a success!

My question Aunty, is do we start bigger and increase our risk of success? As my business partner says, do we back ourselves? Or do we start smaller with less risk but maybe not give ourselves the best chance of success?

Over to you,
From a fellow entrepreneur

Dear Fellow entrepreneur,

I am rooting for you! And by the way, excellent question. I will answer it with this: “Failure comes early, success takes time.”

Ha. Thought so. Didn’t help at all did I? But think about it. We know that taking risks is at the heart of entrepreneurship. Without risk you don’t grow. Without growth you wither and die. Without growth you are bored stiff.

On the other hand, the key to entrepreneurial success is not to risk the company. Anyone who risks the company launching a new product is a fool, not an entrepreneur. How do you know the risk factor in a project? Well, you can do all the numbers in the world but I have a foolproof test.

What keeps you awake at night? I have launched lots of new projects, some small, some big. Some never cause me any lack of sleep. I know without doubt they will be successful. Others worry me. There is one element that is not right, unproven, made on an assumption that niggles. I make the call to go ahead. But on the “niggly” projects I have an escape route. I can scale it back easily if it doesn’t work or starts sucking up too much cash, resources or oxygen.

So if you have any niggles, have a scale back plan. If you are certain it will be a success, back yourself!

Be smart,
Your Aunty B

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