Apply the framework that Risk is Always Reducible both in your own business and on the projects you do for your clients. Learn why.
I caught a bit of an interview with Leslie Wexler, CEO of The LimitedBrands, on CNN recently. In part of the interview Mr. Wexler was relating a conversation that occurred between himself and his father decades ago when Leslie was first considering opening multiple stores.
Leslie told his Dad that it felt like he was sitting out on a windowsill on one of the higher floors of a skyscraper...he was exhilerated, scared, and taking a great risk. His Dad responded to the effect that "It's okay to be on a windowsill from time to time. It's exciting and it reminds you that you're alive. But you only want to be there for a moment. It's not a place you can live."
Everyone faces risk—in life and in business. And risk is always reducible. So if you find yourself spending more than a few moments now and again sitting on the windowsill, may I suggest you're taking too many risks?
Shift your perspective and go for the long-term high of sustainable business success in lieu of the short-term adrenaline highs you get from not reducing risk.
It's fairly easy to learn how to assess the risks you and your clients are facing. It's a matter of evaluating both the impact and the risk a behavior, task, or project will have on the business. Then you brainstorm ways to reduce that risk.
For example, perhaps a project being considered by your client will have a high positive impact on the bottom line; however, it involves very high risk by precipitously drawing down the business's cash reserves. In this case, you can work with your client to either bolster their cash reserves prior to starting the project, or to extend the timeframe under which the project is completed to allow for more collection of accounts receivable by your client. Both of these possibilities would reduce the risk your client is taking when initiating the project.
TIP: Make sure your clients know that you're helping them reduce risk—it makes you more valuable to them.
You may find that at times, even after you've reduced the risk, it is still too costly. Great! Either find another path to the goal or re-evaluate the goal.
About the Author
Rose Hill is a Certified Business Coach who works exclusively with independent professionals who desire to create a solid foundation for their continued business success. I do this by means of a comprehensive 4-pronged, 6-month High-Impact Business-Building program. Rose can be reached at (503) 629-4804 or via e-mail to rose@coachrose.com