There are times in life and business when you’re presented with a set of new decisions or choices that will define the future for you or your company. But how do you know if you’re making the right choice? Or even if there’s a right choice at all? You may be facing a “which is least-worst or most-beneficial?” situation.
All big decisions have risk associated with them. Some risks you can contain or offload, but others you need to accept and make sure that you are happy that it is a considered gamble to take. For example, buying a house: buying a buy-to-let property is a different assessment than purchasing a buy-to-live-in home. So make sure you are looking at things through the right framework.
As Mark Zuckerberg, the founder of Facebook, said: “The biggest risk is not taking any risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
The risk of no change
We’ve all heard the saying “if it ain’t broke, don’t fix it”, but sometimes things don’t have to be broken for the opportunity to arise to make things better. You don’t have to search hard to see how both calculated and instinctual risks taken by pioneers and entrepreneurs helped drive some of the greatest innovations and products of our time. From Steve Job’s visionary work at Apple to Bill Gates’s decision to drop out of Harvard and go on to create Microsoft, their willingness to not just continue the status quo or take the usual path in life defined their successful futures.
Cost benefit analysis
When presented with choice A or choice B, make sure you fully study the risks and benefits of each choice objectively and realistically. Try your very hardest to keep your instinctual favourite out of this process as much as humanly possible, so as not to cloud your judgement. Once you’re satisfied you have looked to the best of your ability at all the potential risk/rewards associated with each option, you’re in much better stead to make those big decisions effectively. Find someone in your network to discuss the options and your analysis with. They may well spot something obvious that you haven’t considered. Also, don’t forget the personal and emotional factors in this assessment: there may be very good family reasons why taking big risks now is not such a great idea.
Greed clouds judgement
Remember Gordon Gekko’s quote from the movie Wall Street: “greed is good”? Try “ambition is good”, instead. Greed can hinder your ability to make stable, long-term decisions and making sure your decision comes from a place of rationality is paramount to success in life and business.
Not sure whether to take that risk? St Andrews Highway’s experienced team are here to guide you through your next big decision, call today on 0117 230 8757 or 07973 79941 for a consultation.