How many times have you asked yourself this question as an entrepreneur: Should I take the risk?
Starting your business was a risky move, and ever since then, you probably have encountered other risks. Some risks you may intuitively know how to handle, but other risks may get your Ego saying, full blast, in your ears: Don’t do it!
Even though you’re not supposed to take business advice from your Ego, you may be wondering if you should take the risk – whether it’s adding to your team, applying to be a TEDEx speaker, investing in Facebook advertising, or any other risk that has you concerned.
In this week’s marketing and mindset lesson, I will share with you a way to assess a true risk – and whether you should take the leap (or not).
Should I take the risk? I ask this question often in my business. I like to be level-headed about my decisions, making sure I have enough information to make an educated decision.
At least that’s always my intention. Then my Ego starts talking, and its friend Anxiety kicks in, and sometimes my level-headedness goes out the window – and I am left feeling paralyzed and indecisive.
Risks are how you grow. You have to step outside of your comfort zone to feel true business growth.
I also know that some risks are not worth it, and if I can avoid spinning my wheels, I will.
Recently, I read The Four-Hour Workweek* by Tim Ferriss, and in his book, he talks about assigning a value to worst-case scenarios like this: On a scale of 1-10, what’s the impact of taking the risk?
I liked this idea, but it needs to go a step further by considering the probability of the worst-case scenario.
Let’s face it: Our imaginations are amazing, and we can create stellar worst-case scenarios. However, the probability of a worst-case scenario may be slim to none, and it’s important to identify this too.
What’s the worst-case scenario?
So, here’s how I now assess a risk: I get out a sheet of paper and at the top, I ask myself: What is the worst thing that could happen? Then, I draw three columns:
- Column 1: Worst-Case Scenario
- Column 2: What’s the probability it will happen (as a percentage)?
- Column 3: How bad would it be (1 – hardly bad at all; 10 – super bad)?
Then I let my imagination take over, documenting all the worst-case scenarios – no matter how small or improbable it may be. Once I am done, I can step back and determine how to proceed.
Should I take the risk?
By evaluating the likelihood of your worst-case scenario, plus rating how “bad” it would be, you can now assess if a risk is worth taking. This exercise will also help calm your Ego down and allow you to make a more level-headed decision.
I want you to take risks in your marketing. It’s how you’ll get louder, gain more visibility, and attract more clients. With this exercise, now you can bust through any mindset blocks and see if something is worth the leap.