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Is Risk Aversion Ruining Your Business?

Every where you look around you see people avoiding risk.  Even stock brokers try to help you diversify your stocks in order to try to minimize or avoid risk all together.  Sounds like a great plan, hang on to your money and no worries.  Well what if hanging on too tightly would cause you to lose money?  If you leave most of your funds sitting in a bank account you are losing interest which could be growing your money at a much more rapid rate.  The same goes for your internet business if you are turning down growth opportunities for safety.

When you run an internet business do you avoid making any decisions that might involve risk?  Are you failing to swap over to your own website due to fear of failure or additional risk?  Even if you are running your own site do you avoid making purchases that could dramatically enhance the amount of business you do?  It is easy to make these types of decisions and stunt ourselves because society has taught us to avoid all risk whenever possible.

What we are all missing is the simple fact that higher risk brings greater returns…think back to your economics class.  Now I am not saying that you necessarily should embrace risk at any cost.  What I am saying is that many of us need to learn to become more comfortable with some added risk in order to see a larger benefit.  Next time you feel that tinge of hesitancy stop and take a look at what benefits could result if you take the plunge and push forward.  If you fail will this prevent you from putting food on the table or keeping the lights on?  If not, why not proceed?

The worst possible scenerio that could ensue would be that you fail.  Now no one likes failure but in failure many of us cross an epiphany that we would not have had if we did not fail.  What you learn by failing could enhance your business far more than what you learn through small successes.  Worse than failure is the decision not to act at all, because either way there is no chance of any additional benefit.  So what is it that you are waiting for?  Set aside your reserves so that you do not break yourselves, take a deep breath and jump in with both feet.

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3 Comments

  1. ThatsBlog wrote:

    Thanks for your submission to the second edition of the Blog Carnival: Blogging. Your post has been accepted and its live: http://thatsblog.com/?p=45

    -ThatsBlog.com

    ThatsBlog’s last blog post..Blog Carnival: Blogging: Second Edition

    Tuesday, April 29, 2008 at 6:41 pm | Permalink
  2. TK wrote:

    Educate then act. putting off risk means putting off success. go do it!!!

    Monday, May 5, 2008 at 6:42 pm | Permalink
  3. Researcher wrote:

    “take a deep breath and jump in with both feet” Good suggestion.but before you do it,test it one feet.also beware of 11 deadly mistakes to avoid when make money online.

    Thursday, June 5, 2008 at 1:50 am | Permalink

11 Trackbacks/Pingbacks

  1. Business » Is Risk Aversion Ruining Your Business? on Thursday, April 24, 2008 at 1:36 pm

    [...] Ubergizmo, The Gadget Blog wrote an interesting post today on Is Risk Aversion Ruining Your Business?Here’s a quick excerpt…which could be growing your money at a much more rapid rate.  The same goes for your internet business if you are turning down growth… [...]

  2. bloggingzoom.com on Thursday, April 24, 2008 at 7:51 pm

    Is Risk Aversion Ruining Your Business? | Sarah Paine…

    Have you ever stopped to think about how programmed you are to avoid any type of risk? It is amazing that from birth on our parents try to teach us to play it safe in just about everything we do. The sad fact is the greater the risk the greater the r…

  3. Bootstrapper » Carnival of Business and Entrepreneurship #18 on Saturday, April 26, 2008 at 2:58 pm

    [...] Paine presents Is Risk Aversion Ruining Your Business? posted at Sarah Paine. Take a look at how your own preprogrammed fear may hold you back from [...]

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  5. Tip Diva | Carnival Of Tips - April 26, 2008 on Saturday, April 26, 2008 at 6:30 pm

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  7. Tip Diva | Carnival Of Tips - May 3, 2008 on Sunday, May 4, 2008 at 2:27 am

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  11. [...] Paine presents Is Risk Aversion Ruining Your Business? posted at Sarah Paine, saying, “Take a look at how your fear of risk may cripple your chance [...]

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