Entrepreneurship and risk-taking go hand in hand. To create something totally unique means doing something that no one else has. However, many entrepreneurs have a method to the madness. Risk-taking isn’t necessarily making a blind decision about something, but rather weighing the pros and cons of that outcome.
A calculated risk is one that has a plan and strategy behind it. It evaluates all potential outcomes rather than taking a gamble on the future.
Whether you are making a career change, narrowing down a business deal, or planning a personal move out of the country, there are important factors to keep in mind with calculated risk-taking. These tools and tactics apply to all areas of life.
To start, break your goal down into smaller, individual risks and be sure to schedule regular checkpoints to check in on your progress.
The better pulse you have on the situation, the better you can lower your risk and improve the outcome.
Take smart and calculated risks
For a further breakdown on calculated risk-taking, check out the visual by Valpak below on how to take smart and calculated risks. It covers a helpful formula for calculating risk, steps you should take to anticipate red flags, and successful company examples like Pinterest, Whole Foods, and Charmin.
This infographic was created by Valpak.