These business leaders share how they gauge whether a risk is worth taking—especially if it involves stepping outside of their comfort zones.
Risk-taking is the ultimate tightrope walk between regret and reward. It can be thrilling and terrifying, but it’s usually the place where real growth happens.
So, how do leaders decide when to leap and when to stay safely on the ledge?
From gut instincts to calculated trade-offs, our community of leaders offer their insights for navigating the fine line between “worth it” and “what was I thinking?”
What’s your tipping point?
And do any of these resonate?
Negar Riazati
CEO – Australia and China: Performia
This really depends on the risk/reward (outcome) scenario. I would ask myself: What is the overall outcome that we’re going for if the risk is successful? What is the worst that could happen if the risk fails?
Then I would most likely research or ask questions to understand the factors surrounding the risk to handle the pros and cons, and any doubts in my mind.
Sometimes a leap of faith is needed, and as long as there is no chance of others being hurt, I would look to my own ability and, if I feel confident within myself, then I will take the risk.
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Hitesh Dhawan
Founder and CEO: Neuronimbus Digital
Stepping beyond our comfort zones is often where true growth occurs. I’d say it’s more important to go out of your comfort zone than seek a nice comfy space in life. There’s nothing exciting in the “BAU” zone.
However, deciding when a risk is worth taking requires a blend of introspection and strategic analysis. Begin by aligning the potential opportunity with your core values and long-term objectives. Does this venture resonate with your personal or professional mission? Next, thoroughly assess the potential outcomes. Weigh the benefits against the possible drawbacks, considering both the best-case and worst-case scenarios.
It’s also crucial to evaluate your readiness to handle the challenges that may arise. Do you possess the necessary resources, skills, and support systems? Seeking advice from trusted mentors or peers can provide valuable perspectives and help mitigate blind spots.
Ultimately, embracing calculated risks can lead to significant rewards. So, it’s important to get uncomfortable every once in a while, but make sure that you’re doing it with your eyes wide open. Your mistakes are your best teachers; don’t shy away from owning up.
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Joey Corea
Founder and Creativity Catalyst: The Plucky Jester
Here are some ways I gauge if a risk is worth taking:
- Will this risk teach me something faster than other options? For example, learning to swim. Jumping straight into deep water without practice is a quick way to learn, but it’s risky! Taking swimming lessons can help me learn the skills as fast—and much more safely.
- Could this risk lead to irreversible ruin? For instance, putting all my savings into one business idea could lead to financial ruin if it fails. A safer way to stretch myself could be to start a side hustle while keeping my main job.
- How reversible is this choice? If I’m terrified of dancing but sign up for dance classes, there’s a risk of embarrassing myself. But if it doesn’t go well, I can always quit the class—and take some time to laugh it off!
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Rishi Kapoor
Founder: Magic-AI
Gauging whether a risk is worth taking, especially when stepping outside your comfort zone, requires a blend of rational evaluation and emotional readiness. The first step is to assess the potential rewards. If the opportunity aligns with your long-term goals or could significantly advance your personal or professional growth, it becomes more compelling. The reward should outweigh the risk, even if the path to success is uncertain.
Next, evaluate the downside. What is the worst-case scenario, and how likely is it to happen? Will you be able to recover from the potential failure, or is it something that could have lasting consequences? It’s important to weigh the impact of failure not just on your immediate situation but also on your mental and emotional resilience.
Additionally, trust your instincts. Stepping outside your comfort zone can be daunting, but if you feel excited or energised by the opportunity, that can be a strong indicator that the risk is worth considering. Conversely, if your gut signals fear driven by a genuine sense of danger, it’s worth taking a step back to reassess.
Ultimately, a well-balanced decision combines a realistic evaluation of the risk with the recognition that growth often lies on the other side of discomfort.
The post Expert opinion: Gauging whether a business risk is worth taking appeared first on The Big Smoke.