entrepreneurs

How Entrepreneurs Handle Risk in unprecedented times?

Elena Hudgens
By Elena Hudgens 8 Min Read

I think it’s important to remember that in times of uncertainty, entrepreneurs are very often the ones who find ways to turn uncertainty into opportunities. That’s our job, we’re the ones who take on risk and uncertainty on a daily basis. The secret is to not let the uncertainty overwhelm you.

Entrepreneurs plan ahead and then act on it

“If you fail to plan, you are planning to fail.”

There’s nothing worse than when you’re in the middle of a project or task and then realise that you didn’t do something that you should have done a week ago. As an entrepreneur, you can’t just jump into the fray and hope for the best. You have to plan ahead and then take action. Entrepreneurs have a vision and an idea of where they want to be and they take small steps to get there. They have a plan and they take action on it.

Entrepreneurs embrace the risk

I see great opportunity in this uncertainty. It’s a great time to build your business, put an unexpected opportunity in front of you and, above all, be yourself. Remember that everything is new, and uncertainty is your friend. It makes you hungry and thirsty for knowledge. In a world where everybody is looking for ways to innovate and disrupt, uncertainty is your secret weapon. Be the entrepreneurs who embrace the risk, even in uncertain times. You should be able to say this to yourself, “You know what? I don’t know if it’s going to work. I hope it does, but I’m going to give it my best shot.

Entrepreneurs always support others and are always optimistic

It’s important that we have each other to lean on in these turbulent times. We all know at least one entrepreneur who has met with a setback this year. So I can tell you from firsthand experience that the support and trust of other entrepreneurs is absolutely critical. It’s also important to stay positive. This isn’t a time to wallow in pessimism. Successful entrepreneurs stay positive and I think it’s because our own stories are so powerful. When times get tough, entrepreneurs find inspiration in those around them and that’s when you see people rise to the occasion. 

Entrepreneurs take only calculated risks

As an entrepreneur, you have to be willing to take risks but you can’t be impulsive about them. You have to make sure that the risks you’re taking are calculated and that you’re doing what you can to mitigate them. You have to realise that if you want to achieve something in life, then you have to be prepared for the fact that sometimes you’ll fail and sometimes things won’t go according to plan. In uncertain times like these it’s important to not be blinded by the noise. It’s really important to take a step back, look at the big picture and make decisions based on fundamentals rather than emotions. Start by identifying the core values of your business. 

Entrepreneurs have a fallback plan

When things get difficult, I think it’s a natural tendency for entrepreneurs to kind of retreat into their shell and not look at things objectively. But I encourage entrepreneurs to seek out advisors who can help them work through things so that they don’t leave themselves feeling frustrated or lost. Entrepreneurs can feel, maybe at a heightened level, that failure is inevitable. But actually that’s the last thing that you should be thinking. Because failure doesn’t mean the end of your life. The inability to embrace risk-taking may keep entrepreneurs stuck, but it may also keep them from being successful. Entrepreneurs need to keep a vision in their mind of what it is they want to achieve and what success looks like for themselves. And a backup plan can be quite useful in such situations. 

Entrepreneurs are not afraid of pivoting

Some people are afraid to pivot or to pivot their business. And that’s okay, that’s a normal human response. But many entrepreneurs do pivot. They often pivot in a very strategic way. They’re using research and data, they’re talking to their peers, and they’re making risk-based decisions. They don’t wait until the last moment, and if they do it is with the full knowledge that the market may or may not be ready. I see many entrepreneurs making this pivot and it usually works out pretty well for them. Entrepreneurs never stop pivoting. In my entrepreneurial life, I too have pivoted many times. 

Entrepreneurs never stop learning

As an entrepreneur, you need to constantly be a student of the world. You need to be always learning and growing and evolving and taking in new information from the world around you. There’s always something new to learn, whether it’s about marketing, technology, design, or business. The history of human progress is the history of human learning and growing. If you’re not learning, then you’re not growing, and if you’re not growing, then you’re dying. Always research what’s trending and what’s popular in your industry. You never know when you’re going to come across a new opportunity or idea.

Entrepreneurs never dwell on their past

Entrepreneurs are never stuck in the past. They are always looking forward and moving forward. I think that’s really important because if you dwell on your past, you’ll be stuck there. If you look forward, you can see what’s ahead of you and prepare for it. When you can give yourself permission to make mistakes, take risks, and stay in a situation where you have no choice but to fail, then the possibility of success is increased dramatically.

Conclusion

As an entrepreneur, you never know what’s going to happen tomorrow. But no matter what happens, you always have a vision, a goal, a need to fulfill, and passion to fulfill. The fact is, most entrepreneurs tend to be optimistic people. Whether you’re the president of the United States or a serial entrepreneur, your job is to provide a solution, which is exactly what you did when you started your business.

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Posted by Elena Hudgens
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Elena Hudgens is an entrepreneur with 10+ years of experience. She started her journey by building her own e-commerce website on Shopify and turned her $1000 savings to millions in just 2 years. Soon she started different ventures in which she failed and succeeded. And now, she's on a mission to help other entrepreneurs with her life and business lessons.
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