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Learning to Manage Risks: Very Important for Entrepreneurs

A good entrepreneur isn’t always someone who looks for the next cliff to leap off of. A savvy entrepreneur knows and understands the risks he is taking and manages them well. Business is all about taking risks. But to succeed, a businessperson shouldn’t take the risk unless he knows exactly what he’s getting into. In other words, you have to make calculated moves not to eliminate all kinds of risks, but to be more prepared to tackle any difficult situation.

Here are ways to help you learn to manage risks better:

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Accept and embrace what is to come.

Despite having no knowledge of what the future holds for you, you have to prepare yourself for what is to come. You have to learn to embrace any uncertainty. Most importantly, you have to understand and accept that risk is always a part of business and that without it, there will be no innovation, reward or achievement. Simply put, a good businessperson sees any challenge not as a problem, but an integral part of producing something valuable.

Weigh the circumstances properly.

A successful entrepreneur will never bet more than he can afford to lose. Rather, he will weigh out all the consequences to better manage any risk. He will also look for opportunities where the loss is minimal but the gain will be far greater.

Realize that working for themselves is the best way to succeed.

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Working for other companies does not offer any security. But even if there is more risk in running their own business, a good businessman knows that they are more capable of and have more confidence in their decisions when doing it on their own. This means that they would rather risk everything and fail.

Seeking opportunities in places where others are too afraid to look into.

Howard Stevenson, a Harvard Business School professor wrote that entrepreneurship is “the pursuit of opportunity beyond resources controlled.” Experienced entrepreneurs believe that not pursuing or grabbing a good opportunity is riskier than waiting for something to happen.

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