It’s one of the age-old advice you hear in business: take risks. Seasoned entrepreneurs say that it’s where growth happens, it’s when innovation kicks in. What’s often overlooked in this wise counsel though is the kind of risk you should pursue.
When you’re aiming to be successful, you don’t seek out just about any risk you see. The kind that you want is the one that’s beneficial, carefully-studied, and of course, profitable. In short, smart risks. Here are some of those risks worth pursuing:
An underserved niche
While the mega-companies are out there serving a broad market, zoom into specific audiences you can cater to. Being the first to pounce on such a targeted group surely brings up a lot of uncertainties. But it’s a risk that would prove promising when you’re able to capture the attention of that underserved (or unserved) market.
You enjoy little to no competition. You get to boost the loyalty of customers. You become a credible, reliable thought leader in the industry. At least in your first few months or years before the others follow your lead. Now, the challenge is, how exactly can you identify underserved markets? The key here is think exclusion.
Consider the audiences who get excluded from mega-brands, which you can include in your business. For instance, in the fashion industry, since thin is in, plus-size women are the ones always underserved. A business catering to this type of audience is a good opportunity, isn’t it? The principle, think exclusion for inclusion.
A hot, new trend
The culture changes. The economy fluctuates. As a result, trends emerge, which sometimes shake up an entire business industry. Keep an eye on these trends. Better yet, predict the next big thing and jump on it while no one does yet. This is most important when you plan to jump on a well-saturated industry like the food sector.
If you want to be the next successful pizza food business in your locale, you need to be watchful of trends. One of the best ways to keep up with industry changes is to have a mentor. With their years of experience, they’re equipped in making forecasts about which investments will pay off in the next few years.
At the same time, you can catch the way they think that you can form predictions yourself over time. Join local business organizations so that you can be a handshake away from thought leaders and potential mentors in your industry.
A competitor’s weakness
Another promising opportunity is turning competitors’ weaknesses into your strengths. How do you know their vulnerabilities? One, interview people who directly engage with your competitors. Ask them what they wish they could change from the brand’s products and services.
Two, reflect on your personal experiences. What are you most disappointed in when you eat at a restaurant, go to a clothing store, or do business with megabrands? Ask the same question to your friends and relatives.
Three, look online, specifically at the comments section of your competitor’s social media pages. This is where customers air out their disappointments in doing transactions with businesses, so you can get ideas here on which to improve or introduce in your company’s operations.
Be Smart in Taking Risks
Again, risk-taking in business isn’t about doing something rash and careless. It’s rather the opposite: finding smart opportunities. Pursue these opportunities.