Will I really have to take all kinds of risks in order to succeed in business?
A few years ago, my youngest brother asked me for a favor for his friend, *Oliver.
It appears that, Oliver has this new exciting business opportunity and he wanted some marketing advice.
I couldn’t say no. Besides, I was curious.
I wanted to know what this exciting business idea was all about.
So, I met Oliver and he was really excited.
He just kept on smiling as he told me about his great idea for a packaged food business.
He even showed me a sample of the packaging – which was quite beautifully designed.
But then, the more he talked, the more I felt packaging isn’t really the best way to offer the food he’s trying to sell.
So, I asked him what’s his target market and when we can start testing his idea.
Then he replied:
Oliver: Testing? I don't have time for that.
I'm launching this thing next week.
Me: What?
Oliver: Yeah, I've already set up a small factory in my house; with equipment and everything.
I even have 3 big boxes full of that packaging in your hand.
Me: Oh Wow. Three big boxes?
When did you do all that?
Oliver: Oh, I made the order 3 months ago when the idea first came to me.
Me: 3 months ago?
Why didn't you contact me all this time? And why the rush?
Oliver: Well, this is a great idea and I didn't want to waste any time or someone else do it before me.
Besides, you know how it is. You have to take big risks and move fast to succeed as an entrepreneur.
Me: Oh. Is that so? Hm.
It looks like you've got everything under control. So why am I here?
Oliver: Not really. We do need someone who can help us successfully launch the product and the business.
So, will you help?
I had already promised my brother to help his friend, so I couldn’t say no.
I did design a marketing plan for the launch.
A few weeks later, Oliver called, saying he wants to stop the packaging and do a street food business instead.
Me: Why the sudden change?
Oliver: Hm, business is really slow. People love the food though, but they don't like it in the packages.
They say they'd prefer to buy it at a street food stand or something.
Me: Then, do that.
Oliver: Well, I can't. I put all my money into the equipment and those 3 big boxes of packages.
*Names in this article have been changed.
Sadly, Oliver is not the only one. Stories like this are very common.
An excited beginner has a dream of owning a business one day. So they take a huge risk on a “great idea”.
But then, everything ends blowing up in their face and leaving them in a whole lot of mess and regrets.
Don’t get me wrong. Taking risks is a good thing.
Risk is a normal part of life – and we all live with it every day.
In the words of Seneca, the Roman philosopher, “You can think big and take ‘risks’ without fear”.
Mostly because anything worthwhile comes with some kind of risk.
Like trying out something new, falling in love, moving to a new city, raising a child; or in this case, starting a business.
“not so risky business“
Yes, owning a business does come with risks.
But unlike what most people think, successful entrepreneurs don’t take huge and unnecessary risks.
Yeah, it might look like that from the outside. But that’s not the true picture.
That would be quite stupid, irresponsible and a huge waste of time and good money.
In fact, most successful business owners, try as much as possible to avoid or eliminate risks.
And here’s why.
“enter the baker’s kitchen“
You see, every idea or product is based on a unique set of facts or characteristics.
But for any business idea or product to make sense or be successful; its facts or characteristics must be true in the real world.
If even one fact turns out to be false, then that means the idea is vastly less promising than it appears.
It’s just like baking a cake.
Every cake has its own specific set of:
- ingredients in the right quantities,
- equipment,
- and instructions you must follow down to a t.
Take one thing out or miss a step; and you would end up with either a mess or the wrong cake.
Or, in this case, bankrupt and out of business, wondering how things went so terribly wrong.
“checking the facts“
“Better a little caution than a great regret” – The Richest Man in Babylon by George S. Clason.
First off, it doesn’t matter how excited you are; excitement doesn’t validate ideas.
It’s rather that unique set of facts that’ll make an idea “great” or a bad one.
How?
Well, by simply testing the facts in the real world.
More often than not, many see testing as a waste of time or “missing out on a great opportunity”.
But that just laziness and being blinded by excitement.
“eliminating the risks“
Testing allows you to accurately prove in advance whether your set of facts is true or not.
That’s because, the more you can accurately test your big ideas:
- the less risk you’ll be taking, if the facts are false.
- and the more confidence you’ll have, if the facts are indeed true.
Testing is a huge time and money saver on ideas that have no chance of working.
And the faster you can figure out if your idea will work or not, the better off you’ll be.
In fact, there are all kinds of practical ways to test different kinds of ideas, products – to avoid risks.
“no stupid risks necessary”
So, NO
You won’t need to take all kinds of unnecessary risks, if you simply test your ideas.
Unless you also believe in the lie that, “successful entrepreneurs only find success after failing many times”.
Well, in that case, I say, “Good Luck”.
Small To Sprout 
Great piece
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Thank you
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